TLDR
- South Korea’s Ministry of Culture, Sports and Tourism may delay its casino law changes past September.
- The plan would raise the top tourism fund contribution rate from 10% to 15% of gross gaming revenue.
- A new five year casino licensing system is also part of the proposed changes.
- Holidays and a parliamentary audit in October could push the timeline back further.
- Casino industry groups warn the higher rate could hurt investment and jobs in the sector.
South Korea’s government is working on changes to the country’s casino laws. The plan could now slip past its original September target date.
The Ministry of Culture, Sports and Tourism wants to update the Tourism Promotion Act. This law has not changed in close to 30 years.
One part of the plan would raise the top contribution rate into the Tourism Promotion and Development Fund. The rate would go from 10% up to 15% of annual gross gaming revenue.
This higher rate would not apply to all casino revenue right away. The ministry plans to set a new revenue band, and only money earned above that line would face the 15% rate.
What The New Licensing System Would Change
The second major change is a five year licensing system for casinos. Under this system, operators would need their licenses reviewed and renewed every five years.
The reviews would look at a few key areas. These include whether a casino follows the rules, stays financially stable, and is run with skilled management.
The ministry says this review process is needed to modernize old rules. Officials want the casino sector to match how other countries handle gaming oversight.
Why The Timeline Is Slipping
A few scheduling conflicts are getting in the way of a fast rollout. The Chuseok holiday runs from September 24 to 27 this year.
Right after that, the National Assembly holds its yearly audit of the government. That audit runs from October 6 to 27.
A ministry official told the outlet MTN that the delay is meant to give the industry more time. The official said talks with individual casino operators are still ongoing.
The office of lawmaker Cho Gye-won, who has pushed for the changes, said it still has not seen a draft. This means the ministry has not finished writing the proposal yet.
The ministry is also looking at transition rules for casinos that got their licenses recently. This step suggests officials want to soften the impact on operators caught mid process.
Industry Groups Raise Concerns
Shin Jong-ho, the secretary general of the Korea Casino Association, told MTN that a higher tax rate could scare off new investment. He said this could slow down development of new gaming facilities.
Casino and tourism groups have gone further and asked the government to drop the plan entirely. They argue the changes could hurt jobs and make South Korea less competitive against other casino markets in the region.
Groups have specifically pointed to Macau, Singapore, and the Philippines as regional rivals. They say those markets could become more attractive to investors if South Korea’s rules grow stricter.
For now, the ministry says it plans to submit the amendment sometime this year. No new date has been set.
