Casino revenue up 10.3-fold, while tourism fund cap remains at 10%
Total revenue across South Korea’s foreigner-only casino industry has increased 10.3-fold since the system was introduced, while the ceiling on contributions to the Tourism Promotion and Development Fund has remained unchanged for nearly three decades. The Ministry of Culture, Sports and Tourism is pursuing a plan to raise the maximum contribution rate from the current 10% to 15% to reflect changes in the industry’s scale and revenue structure.
However, the specific revenue brackets and implementation date have yet to be determined. The government plans to gather feedback from industry representatives and experts before drafting amendments to the relevant laws and regulations.
How casino contributions to the tourism fund are calculated
Under the enforcement decree of the Tourism Promotion Act, casino revenue is calculated as gross revenue—the amount received from customers minus the amount paid out to them. The Tourism Promotion and Development Fund contribution is assessed separately for each casino property, rather than across an operator’s business as a whole.
- Annual gross revenue of ₩1 billion or less: 1% of gross revenue
- More than ₩1 billion and up to ₩10 billion: ₩10 million plus 5% of the amount exceeding ₩1 billion
- More than ₩10 billion: ₩460 million plus 10% of the amount exceeding ₩10 billion
The current system is progressive, with the contribution rate rising as revenue increases. But as the casino industry’s overall revenue has grown, many operators have moved into the top bracket, weakening the intended effect of the progressive structure, critics say.
Tourism ministry seeks to raise top contribution rate to 15%
In an explanatory document issued in July 2026, the Ministry of Culture, Sports and Tourism said total revenue at foreigner-only casinos had grown 10.3-fold since the system was introduced in 1995, while average revenue per operator had risen 7.8-fold. By contrast, the contribution system has effectively remained capped at 10%, creating a growing gap between the industry’s expansion and its level of public contribution, the ministry said.
The government is considering raising the statutory contribution-rate ceiling under the Tourism Promotion Act from 10% to 15% and adding revenue brackets above the existing 10% tier to the enforcement decree. The ministry stressed, however, that the plan would not impose a flat 15% rate on all casino revenue. The threshold for the highest bracket and whether the existing brackets would also be revised have not been decided.
The Tourism Promotion and Development Fund is used to expand tourism infrastructure, attract international visitors, develop tourism content and provide financial support to tourism businesses. The government says it wants to strengthen a cycle in which part of the revenue generated by the casino industry is reinvested in tourism.
Casino industry warns of weaker investment and double burden
The Korea Casino Business Tourism Association has called for the proposal to be reconsidered, warning that the planned increase in the contribution rate, along with measures such as a casino license-renewal system, could dampen investment and employment in the sector. Industry representatives argue that because the tourism fund contribution is based on revenue rather than operating profit, even operators running at a loss must pay it.
In addition to the Tourism Promotion and Development Fund contribution, casino operators are subject to various taxes and charges, including individual consumption tax, education tax and corporate tax. The industry is concerned that a further increase could reduce the ability of integrated resorts to invest in hotels, entertainment and convention facilities, as well as overseas marketing.
The government, for its part, emphasizes that the proposal would not apply a flat 15% rate to all casino revenue. Rather, it says the measure would adjust the public contribution made by high-revenue operators in line with the industry’s scale. The key issues ahead are expected to be the revenue threshold for the highest bracket and the rate that would actually apply.
Balancing tourism reinvestment with casino competitiveness
Expanding the tourism fund could provide additional resources for tourism infrastructure and programs aimed at attracting international visitors. Reinvestment across the broader tourism ecosystem will be especially important if casinos are to be developed as integrated resorts combining hotels, shopping, entertainment and convention facilities.
However, whether a higher contribution rate would actually lead to reduced investment and weaker competitiveness will depend on each property’s revenue, profitability and applicable bracket. The government should take operators’ cost structures and the international competitive landscape into account when designing the system.
Reform of the Tourism Promotion and Development Fund remains at the proposal stage. Until the relevant legislation and enforcement decree are revised, the current revenue-based contribution system will remain in effect. The details could also change during parliamentary deliberations and consultations with the industry.
Frequently Asked Questions (FAQ)
What is the casino Tourism Promotion and Development Fund contribution?
It is a statutory contribution paid by casino operators to support the development of the tourism industry. The funds are used to expand tourism infrastructure, attract international visitors and support the tourism sector.
What are the current casino tourism fund contribution rates?
A progressive structure of 1%, 5% and 10% applies depending on annual gross revenue. For revenue above ₩10 billion, the contribution is calculated as ₩460 million plus 10% of the amount exceeding ₩10 billion.
Has the tourism fund contribution rate been set at 15%?
No. The Ministry of Culture, Sports and Tourism is pursuing a plan to raise the statutory ceiling from 10% to 15%, but the specific revenue brackets and implementation date still require further discussion.
Would the 15% rate apply to all casino revenue?
The ministry has said the plan would not impose a flat 15% rate on all revenue. One option under consideration is to create a new top bracket for high-revenue operators.
Why is the casino industry objecting?
Industry representatives object to the fact that the tourism fund contribution is based on revenue rather than operating profit, meaning that operators with low profitability or even losses must still pay. They also fear that an additional burden could discourage investment and hiring.
How is the Tourism Promotion and Development Fund used?
It supports projects across the tourism industry, including improvements to tourism infrastructure, efforts to attract international visitors, tourism content development and financing for tourism businesses.
