The casino industry has called for a full review after the Ministry of Culture, Sports and Tourism moved to raise the payment ceiling for the Tourism Promotion and Development Fund and introduce a renewal license system for the casino business. The industry argues that growing financial burdens and management uncertainty could dampen employment and large-scale investment.
The Korea Casino Association issued a statement on the 22nd opposing the ministry's proposals under review, which include a "five-year renewal license system for the casino business" and raising the "Tourism Promotion and Development Fund payment rate ceiling from 10% to 15%."
The association objected to the higher burden rate, noting that casino operators pay the tourism fund based on sales rather than operating profit. Even when operators post losses, they must pay the fund, while also bearing overlapping taxes and levies including individual consumption tax, corporate tax, and local taxes, it explained.
According to the association, among 1,718 domestic casino operators over the past 10 years, 815 recorded operating losses each year. It argued that with business normalization still incomplete since COVID-19, raising the fund ceiling to 15% could affect the survival of some operators and their employment.
The association also interpreted the decline in the share prices of major listed casino companies on the 15th, when the fund ceiling increase became known, as a reflection of market concerns. It said that if the increased burden materializes, it could lead to credit rating deterioration, higher financing costs, and the withdrawal of investment plans.
Regarding the introduction of the five-year renewal license system, the association pointed out that it could undermine the trust of existing operators. Korea's casino business has operated under a licensing system without a separate validity period since the revision of the Tourism Promotion Act in 1994. Operators have been subject to management and supervision corresponding to re-licensing requirements, including tourism fund payments, the establishment of computer systems, and compliance with business rules, the association explained.
"The sudden introduction of a renewal license system could undermine the legitimate trust formed by existing operators and infringe on property rights," an association official said. "If operators are exposed to the risk of license cancellation every five years, employment instability will grow and long-term investments involving hundreds of billions to trillions of won could shrink."
The association also argued that the unique nature of Korea's industry as foreigner-only casinos should be considered. Unlike Kangwon Land, which allows domestic visitors, or overseas casinos, applying a five-year renewal system to businesses that only foreigners can use is excessive regulation, it said.
The association further argued that since business suspension and license cancellation are already possible for legal violations under current tourism promotion laws, additionally introducing a renewal license system could constitute double regulation.
It also raised concerns that strengthening regulation amid intensifying competition in the Asian casino market could reduce the competitiveness of domestic operators. Japan plans to open a large integrated resort casino in Osaka in 2030, and if domestic operators' investment capacity declines, foreign customers could move to the Japanese and Southeast Asian markets, it explained.
"Major competing countries are fostering their casino industries by opening domestic markets or expanding operator autonomy," an association official said. "The renewal license system and the fund ceiling increase should be reviewed, and policy direction should shift toward industry development and support."
Meanwhile, the ministry issued an explanatory statement on the same day. "The burden rate is delegated by the Tourism Promotion Act to be specifically determined by presidential decree, and it will be finalized through sufficient discussion with the casino industry, relevant experts, and academia when the decree is amended in the future," it said. "It is not true that casinos pay most of their operating profit as the tourism fund."
