Tourism and policy experts at a recent industry event urged South Korea to create a single authority to oversee its casino sector. They said fragmented oversight across the culture ministry, the National Gambling Control Commission and Jeju Province causes confusion and slows development; Jeju operates its own licensing system.
A unified regulator could change how casino operators are licensed and supervised across South Korea.
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South Korea’s Ministry of Culture, Sports and Tourism has proposed increasing the maximum tourism development fund levy for foreigner-only casinos from 10% to 15% of revenue. At a Seoul roundtable, INSPIRE executive Kang Dae-suk warned the change could put refinancing of more than KRW1 trillion next year at risk; Paradise Co executive Lee Jong-myoung warned it could reduce investment. The ministry has also proposed five-year licence renewals and prior approval for significant ownership transfers or acquisitions.
Reportedly, South Korean casino operators are pressing the government to drop a proposed five-year renewable permit system and increased payments into a central tourism fund. The Ministry of Culture, Sports and Tourism set out the plans the previous month. Operator share prices have fallen and analysts have cut earnings forecasts since the proposals emerged.
It was reported that the Korea Casino Association asked South Korea’s culture ministry to revise proposed gambling rules. It argued that a higher tourism levy and licence renewal requirements could weaken the sector’s competitiveness.
South Korea’s Ministry of Culture, Sports and Tourism has proposed raising the maximum contribution by foreigner-only casinos to the Tourism Promotion and Development Fund from 10% to 15%. The Korea Casino Association said the increase could push operators still recovering from the pandemic towards bankruptcy; it also opposed proposed five-year licence renewals and prior approval for transfers or acquisitions of significant interests.
South Korean casino operators and tourism academics called for lighter administrative requirements and industry rebranding at a Seoul roundtable, citing concern that MGM Osaka could draw tourists and investment away from Korea. The Osaka resort is expected to open in 2030; estimates cited at the discussion put annual visitors at 7.6 million and overseas visitor spending at $1.9 billion.