South Korean Casinos Await Specifics on Tourism Fund Levy Rise to 15 Percent
The KCA has received no details beyond a potential rise in the casino levy to 15% from 10% for the tourism fund and criticizes an unconsulted loan scheme with limited funds. Kangwon Land’s second casino advances with a $55.3M contract. Surveys reveal high interest in Japan’s 2030 MGM Osaka IR, prompting warnings of lost revenue and staff.
SCCG Take — Unclear rules and weak consultation put operators at a disadvantage against emerging Japanese competition. The KCA must push for detailed impact assessments to protect local competitiveness.
South Korean casino operators remain without detailed government proposals on implementing an increased levy for the Tourism Promotion and Development Fund. Shin Jong Ho, secretary-general of the Korea Casino Association (KCA), said the group has been told only that the maximum rate per casino could rise to 15 percent of annual revenue from the current 10 percent. As reported by GGRAsia, no further information on rate adjustments has been provided.
Shin stated the association, which represents 18 licensed casinos, has not submitted any response and will determine its position only after draft legislation is published. “We have only been informed that the maximum rate would be 15 percent. We have not received any further details on how the rates would be adjusted,” he said. “We will have to review the bill before deciding whether to accept it or how to respond.”
The government’s expansion of a loan scheme allowing casino operators to borrow from the tourism fund for infrastructure was introduced without prior consultation. Shin noted this occurred after many operators had already filed their current investment applications. “The amounts are not particularly significant for the casino industry,” he said, adding that operators in the Seoul metropolitan area would receive lower levels of support.
Kangwon Land Project and Japan IR Threat
Shin confirmed that Kangwon Land Inc’s second casino venue is proceeding after government approval and a completed construction tender. Hyundai Asan secured the contract on September 23 with a bid of KRW73.93 billion (US$55.3 million). The facility will house 62 gaming tables, 251 gaming machines, 128 electronic table games, and span 16,918 square metres with a 690-day construction period.
His remarks followed a KCA seminar examining Japan’s casino integrated resort plans. Survey results showed 52.1 percent of 493 Kangwon Land customers, 42.7 percent of 1,250 South Korean outbound travellers, and 46.2 percent of 79 mass-market Chinese players at South Korean foreigner-only casinos expressed interest in MGM Osaka, scheduled to open in 2030. Interest exceeded 78 percent across samples of Chinese VIP, Japanese mass-market, and Japanese VIP gamblers.
University professors at the forum warned that the launch could intensify competition for Kangwon Land Inc and foreigner-only casinos while risking workforce losses to the new Japanese industry. They highlighted broader concerns over South Korea’s competitiveness as casino investment accelerates across the Asia-Pacific.
Regulatory Consultation Gaps
The absence of prior industry input on both the levy structure and loan scheme limits their practical value and risks misaligned policy. Operators will need to evaluate the forthcoming bill carefully against actual investment needs and prepare contingency measures for potential customer diversion to Japan by 2030. Targeted engagement with regulators on implementation details could still shape outcomes before final legislation.
Reporting: GGRAsia
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
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