TLDR
- South Korea’s casino reform ideas remain informal, with no official rate or license terms set by the Ministry of Culture, Sports and Tourism.
- A proposed hike in the Tourism Promotion and Development Fund contribution, from 10% to 15%, has only appeared in media reports so far.
- Talks include periodic license renewals and government approval for ownership changes, but no fixed timeline exists.
- Kangwon Land could face new anti-money laundering reporting rules that the company says may cut revenue by 20%.
- MGM Osaka’s upcoming opening in Japan adds competitive pressure on South Korea’s casino and tourism sector.
South Korea’s government is still discussing ways to change how the country regulates its casino industry. Tourism advisor Lee Jae-seok said these ideas have not been formally proposed yet.
He spoke after a parliamentary forum on the topic. Lee is a government tourism advisor and academic who studies casino policy.
What Changes Are Being Discussed
One idea would raise the cap on casino contributions to the Tourism Promotion and Development Fund. The rate could move from 10% to 15% of annual gaming revenue.
Lee said this 15% figure has only shown up in news articles. The Ministry of Culture, Sports and Tourism has not confirmed this number.
Another proposal would add periodic license renewals for mainland casinos. Right now, no length of time has been set for these renewal periods.
Lee said officials are still deciding whether to add renewals at all. The exact length of any renewal cycle has not been discussed in detail yet.
A third idea would require government approval before a casino changes ownership. Lee said this idea is not a direct response to any single company or deal.
He said ownership issues have come up repeatedly over the years in places like Jeju. He views the proposal as an attempt to fix a gap in existing rules.
Investment Risk And Fund Use
Lee explained that South Korean casinos serving only foreign guests carry more investment risk than casinos in other countries. Because of this, he said any renewal system would likely need longer terms than those used abroad.
He also raised concerns about how the Tourism Promotion and Development Fund is spent. Casinos pay a large share into the fund, but Lee said little of that money goes back into the casino or tourism industry.
He suggested that using more of the fund for tourism and resort development could help the industry grow. He noted there is currently no guarantee that a higher contribution rate would be reinvested this way.
Lee also addressed anti-money laundering rules that could affect Kangwon Land, the only casino in the country open to local residents. Kangwon Land has estimated that stricter reporting requirements could reduce its revenue by 20%.
Lee said he could not confirm that estimate. He said the new rules could inconvenience customers and reduce visits, but he noted these anti-money laundering proposals are separate from the wider casino reform discussion.
A Second Local Casino And Regional Competition
There has also been talk of a second casino open to South Korean residents. Lawmaker Cho Gye-won has proposed a location in Yeosu, and President Lee Jae Myung has asked why the Honam region lacks a casino.
Lee said there is no proof this idea has become official government policy. He noted that another local casino license is legally possible since approvals depend on government discretion.
Lee said the topic of MGM Osaka came up several times at the forum. The Japan casino is set to open and could draw South Korean and Japanese visitors away from Kangwon Land and other South Korean casinos.
Lee said South Korea will need to strengthen its position as the regional casino market grows. He said the country risks losing market share if it does not adjust to competition from nearby markets like Japan.
Whether South Korea moves ahead with these casino reforms will depend on further talks between the government and casino operators in the months ahead.
