Travel·Leisure·Golf

[Exclusive] Recapturing Excess Profits from Foreign-Owned Casinos… Push to Set Fund Cap at 10–15%

Government, Following the Renewal System and Restrictions on Sales and Purchases Proposal to Raise the Tourism Promotion and Development Fund Contribution Rate by 5% Consideration of a Progressive Cap Focused on High-Revenue Companies Top 6 Companies Pay Up to 500 in Annual Contributions

Kang Gyeong-rok
2026-07-15 00:02:02
[Edaily Kang Gyeong-rok Travel Reporter] The government is pushing a plan to raise the cap on contributions to the Tourism Promotion and Development Fund by foreigner-only casinos—such as Seven Luck, Walker Hill, and Paradise—from the current 10% of revenue to 15%. Although the increase is only 5 percentage points (p), the total amount of contributions will rise by 50% compared to the previous level. Given that the fund’s levy system has remained largely unchanged since 1995, the aim is to adjust the public burden in line with the industry’s current scale.
According to the Ministry of Culture, Sports and Tourism and the National Assembly on the 14th, the casino system reform plan includes an increase in the fund contribution rate, a license renewal system, and a prior approval system for changes in major shareholders. The goal is to shift from the existing licensing system, which allowed for long-term operations, to a system of periodic review and oversight. Among these measures, raising the fund contribution rate is a key pillar of the reform plan for the casino licensing and management system.
The government’s fund reform plan involves raising the upper limit of the contribution rate—currently capped at 10% of revenue—to 15%. Rather than applying a uniform rate to all operators, the government is considering maintaining the current progressive structure while increasing the contribution rate for high-revenue operators. Specific calculation criteria will be determined during the process of amending the enforcement decree.
[This image was created using AI technology.]

Consequently, the fund contributions from the six top-revenue casino operators—excluding those in Jeju—are expected to increase by approximately 30 to 50 billion won compared to previous levels. Jeju Special Self-Governing Province, where local authorities manage casinos separately under the Special Act on the Establishment of Jeju Special Self-Governing Province, requires a separate legislative amendment.
The government maintains that as the casino industry has grown, the public burden must be adjusted accordingly. According to data from the Ministry of Culture, Sports and Tourism, since 1995, total revenue for the foreigner-only casino sector has increased 10.3-fold, while average revenue has risen 7.8-fold. Last year, revenue from foreigner-only casinos totaled 2.2 trillion won.
An official from the Ministry of Culture, Sports and Tourism stated, “The casino business is essentially a licensed industry,” adding, “As the industry has grown, it is necessary to adjust both license management and mechanisms for reinvestment in the tourism industry.” The official further explained, “These discussions are not about imposing regulations to pressure a specific sector, but rather about refining the system to enhance trust in the casino industry.”
The casino industry is strongly opposing these measures. The current fund levy system is a progressive structure based on revenue brackets. The industry argues that the thresholds were set long ago and no longer reflect current realities. They explain that while some operators previously fell into the middle bracket, a significant number now fall into the highest tax bracket due to increased revenue, effectively paying 10% of their revenue.
An official from the Korea Casino Tourism Association stated, “Given that the industry has only recently returned to normalcy following the COVID-19 pandemic, raising the cap will inevitably place an additional burden on operators,” adding, “If the license renewal system and the pre-approval system are implemented simultaneously, policy uncertainty could also increase.”
Status of Payments to the Casino Tourism Promotion and Development Fund (Graphic: E-Daily Reporter Moon Seung-yong)

The industry argues that overseas competitive conditions must also be taken into account. Given the competition to attract high-spending foreign visitors with destinations such as Japan, Macau, Singapore, and the Philippines, an increased cost burden on Korean casinos could weaken their price and marketing competitiveness. An association official said, “Incentives for investments in non-gaming facilities, attracting MICE events and group tours, and linking with local tourism should also be considered.”
Experts unanimously agree that for the regulatory overhaul to lead to qualitative growth rather than industry contraction, its rationale and practical application must be clear. Jeong Gwang-min, a member of the Korea Culture and Tourism Research Institute, emphasized, “Plans and strategies for utilizing the increased funds—such as reinvesting them in expanding local tourism infrastructure and training casino professionals—must be presented to strengthen the industry’s fundamental competitiveness.”

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