South Korea’s proposed overhaul of its casino regulatory framework is facing significant delays, with legislative submission pushed back to later this year as the government struggles to resolve growing opposition from operators, industry associations, and labor unions.

The Ministry of Culture, Sports and Tourism had initially targeted a September submission for its proposed amendments to the Tourism Promotion Act. However, extended consultations with operators, coupled with parliamentary schedules including the upcoming Chuseok holiday and October's annual National Assembly audit have effectively pushed the legislative timeline toward late 2026.

Five-Year Renewable Licences vs. Operational Certainty

A key point of contention is the ministry's plan to replace South Korea’s historical permanent concession structure with a five-year renewable licensing regime. While the government maintains that periodic reviews will focus strictly on regulatory compliance, operational stability, and management capability, industry stakeholders argue the policy introduces unprecedented long-term investment risks.

Labor representatives have joined commercial operators in condemning the proposal. The South Korean National Casino Labor Union Council which represents workers across major properties including Paradise, Paradise Busan, Sega Sammy Incheon, Jeju operators, and Grand Korea Leisure (GKL) submitted a formal position paper to Assemblyman Cho Gye-won.

Union leadership, including Paradise City’s Labor Union Secretary-General Hwang Joo-ho, warned that shortened licence terms and higher fiscal burdens will force companies to curtail capital expenditures, freeze hiring, and reduce employee benefits.

Fiscal Pushback: Escalating the Tourism Fund Levy

Alongside licensing changes, the ministry is seeking to raise the statutory cap on operator contributions to the Tourism Promotion and Development Fund from 10 percent to 15 percent of annual gross gaming revenue (GGR).

The Korea Casino Association, led by Secretary-General Shin Jong-ho, strongly opposed the levy increase, pointing out that unlike general corporate income taxes, the tourism levy is calculated on gross top-line revenue meaning operators must pay regardless of net profitability. Financial analysts project that a full 15 percent rate could cut operating profits for major operators by 21 to 37 percent.

In response, government officials clarified that the 15 percent ceiling would not apply to all revenue, but would instead introduce a new, higher revenue bracket for top-tier properties while preserving existing lower tiers. Despite these assurances, operators maintain that adding fiscal burdens jeopardizes the sector's competitiveness as regional markets, such as Japan's upcoming integrated resort in Osaka, prepare to compete for Asia-Pacific gaming traffic.

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