South Korean Foreigner-Only Casinos Face Levy Increase Warning in July 2026
The Korea Casino Association, which represents South Korea’s foreigner-only casino operators, issued a warning in July 2026 that a proposed rise in the tourism levy from 10 percent to 15 percent of revenue would accelerate bankruptcies among properties still recovering from the effects of COVID-19, and the Ministry of Culture, Sports and Tourism advanced a plan that pairs this increase with five-year license renewals plus stricter ownership rules while the association pointed out that the sector pays tax on revenue even when operators record losses.
Details of the Proposed Changes
The Ministry of Culture, Sports and Tourism put forward the levy adjustment alongside measures that would extend license periods to five years and tighten ownership requirements, and these elements form part of an effort to update regulations for the foreigner-only casino segment that has operated under revenue-based taxation for years.
Under current rules operators contribute to the tourism fund based on gross revenue regardless of profitability, a structure the association highlighted when it noted that roughly half of its members posted annual deficits over the past decade, and data from 2025 showed record collections reaching KRW219.5 billion for that same fund.
Industry Position and Recovery Context
Operators in the foreigner-only segment continue to rebuild visitor numbers and revenue streams after pandemic-related closures and travel restrictions, and the association stated that an additional five percentage points on the levy would compound existing financial pressures at a time when many properties still carry deficits from that period.
The revenue-based tax applies even during loss-making years, which distinguishes this segment from many other industries that calculate obligations on profits, and the association emphasized this distinction when it described the cumulative impact of sustained deficits alongside the proposed increase.
Taxation Structure and Collection Figures
Collection records indicate that the tourism fund received KRW219.5 billion in 2025, a figure that reflects both higher visitor volumes and the existing 10 percent levy rate, and the association used this data to illustrate the scale of contributions already flowing from the sector before any rate change takes effect.
Because taxation occurs on revenue rather than net profit, operators that report losses still remit payments to the fund, and the association noted that this mechanism has produced consistent collections even while approximately half the members experienced annual shortfalls over the preceding ten years.
License Renewal and Ownership Provisions
The ministry proposal includes shifting license terms to five-year cycles and introducing tighter ownership criteria, and these changes would apply to the same operators already subject to the revenue levy that the association warned could trigger further financial strain.
Current license arrangements vary, yet the move toward standardized five-year renewals would create a new review framework while the ownership rules aim to clarify control structures within the foreigner-only casino market.
Association Statement and Sector Outlook
The Korea Casino Association framed the combined effect of the levy hike, license changes, and ownership adjustments as a risk that could hasten bankruptcies for properties still emerging from COVID-19 disruptions, and the group tied this outlook directly to the decade-long pattern of deficits experienced by many members under the existing revenue tax.
Figures from 2025 show the tourism fund reached its highest collection level at KRW219.5 billion, and the association referenced these results when it argued that the sector already contributes substantially before the proposed increase from 10 percent to 15 percent of revenue.
Conclusion
The July 2026 announcement from the Korea Casino Association centers on the ministry’s plan to raise teh tourism levy, extend license terms to five years, and impose stricter ownership requirements, and the group connected these elements to the ongoing recovery challenges and the revenue-based tax structure that has produced both record collections and repeated deficits across the foreigner-only casino operators.