The proposal would increase the maximum contribution paid by mainland foreigner-only casinos.
South Korea.- The maximum tourism levy paid by mainland foreigner-only casinos in South Korea may be increased from 10 per cent to 15 per cent of annual gaming revenue as part of a package of regulatory reforms. The proposal is under review by the Ministry of Culture, Sports and Tourism and has not yet been submitted to parliament.
The levy funds go to the Tourism Promotion and Development Fund. The current progressive contribution system would remain in place, but with the maximum rate raised to 15 per cent. The government notes that the contribution framework has remained largely unchanged since 1995 despite significant growth in the industry.
The levy increase would not cover Jeju Island’s eight foreigner-only casinos because they operate under a separate legal framework. However, local officials have said a similar move could be considered for the island if the national amendment is eventually enacted.
The proposed tax change is part of a wider regulatory review that also includes a proposal to replace the de facto permanent casino licences with a periodic renewal system that would also require government approval for changes in controlling shareholders. Authorities say the measures are intended to strengthen oversight of the sector.
The Korea Casino Association has voiced opposition to the proposal, arguing that many operators pay the highest contribution rate under the current system and that the combined effect of a higher levy, licence renewals and new shareholder approval requirements could reduce investment and increase uncertainty.
The proposal would increase the maximum contribution paid by mainland foreigner-only casinos. South Korea.- The maximum tourism levy paid by mainland foreigner-only casinos in South Korea may be increased from 10 per cent to 15 per cent of annual gaming revenue as part of a package of regulatory reforms. The proposal is under review by…
