South Korea’s casino industry to be hit with added tourism fund payment of up to US$35m a year

Ministry wants to increase Tourism Promotion and Development Fund from 10 per cent of revenue to 15 per cent

South Korea’s Ministry of Culture, Sports and Tourism is looking at increasing the amount paid to the Tourism Promotion and Development Fund by its foreigner-only casinos by five per cent.

In collaboration with the National Assembly, the Ministry wants to increase the amount from 10 per cent of revenue to 15 per cent, which it believes will double the amount that the Tourism Promotion and Development Fund receives.

The Ministry of Culture, Sports and Tourism said: “The casino business is essentially a licensed industry. As the industry has grown, it is necessary to adjust both license management and mechanisms for reinvestment in the tourism industry. These discussions are not about imposing regulations to pressure a specific sector, but rather about refining the system to enhance trust in the casino industry.”

South Korea’s biggest casino operators, who include Paradise Co.’s Paradise City, Walkerhill, and Grand Korea Leisure’s Seven Luck properties, could see contributions increase by KRW30bn to KRW50bn (approximately US$20m to $35m) each year. The increase would not apply to Jeju’s eight foreigner-only casinos, which would stay under the jurisdiction of the island’s Special Self-Governing Province legislation.

The Korea Casino Tourism Association said: “Given the competition to attract high-spending foreign visitors with destinations such as Japan, Macau, Singapore, and the Philippines, an increased cost burden on Korean casinos could weaken their price and marketing competitiveness.”