South Korea Casino Reform Ideas Still Unsettled, Says Government Tourism Advisor
Plans to tighten South Korea’s casino regulation remain at a discussion stage and have not yet been formally tabled, according to tourism scholar and government advisor Lee Jae-seok. Speaking after a recent parliamentary forum on potential reforms, he outlined both the opportunities and risks in reshaping the country’s casino framework.
Read more Brazil Plans New Regulations for Betting Customer Support and Health Assistance Channels
Proposed Measures Still Informal
Government ideas currently being discussed include lifting the maximum contribution to the Tourism Promotion and Development Fund from 10% to 15% of casinos’ annual gaming revenue, introducing periodic licence renewals for mainland casinos, and requiring prior government approval for changes in shareholder control.
Lee said that the rate of 15% has been mentioned so far only in the media articles. He mentioned that it had not been suggested by the Ministry of Culture, Sports and Tourism yet, and that it is to be considered as an indicative rate. His opinion was that there was a talk of raising funds, and the rate was still unknown.
On license renewals, Lee said no specific term has been set, and the ministry has not officially endorsed a 5-year period. He explained that the current debate is focused on whether to adopt a renewal system at all, rather than on the precise length of any cycle.
He also questioned the ministry’s description of license renewals as an “international standard,” saying it does not appear to have presented a comprehensive international comparison or concrete overseas examples and that the reference to global norms seems more rhetorical than substantive.
Investment And Ownership Concerns
Lee acknowledged that periodic licence renewals carry both advantages and disadvantages. He noted that most overseas jurisdictions combine renewals with performance evaluations, but pointed out that those systems generally apply to casinos serving local patrons, while most South Korean casinos are restricted to foreign guests.
Because operators in South Korea face higher investment risk under a foreigner-only model, he said any renewal cycle introduced would likely need to be longer than in comparable markets to provide sufficient certainty for investors.
On ownership, Lee said the proposed requirement for prior government approval for changes in casino control should not be viewed solely as a response to recent transactions at Inspire Entertainment Resort or the former Jeju Sun Hotel & Casino. He said similar issues have arisen repeatedly over many years in Jeju and elsewhere, suggesting the proposal is better understood as an attempt to close a long-standing gap in the regulatory framework.
Tourism Fund And Industry Support
Lee said a key issue is how revenue from the Tourism Promotion and Development Fund is used. While casinos contribute a disproportionately large share to the fund, he said relatively little appears to be reinvested in the industry itself.
He argued that directing more of the funds toward casino tourism and integrated resort development could strengthen the sector’s long-term competitiveness. At the same time, he noted there is currently no assurance that any increase in casino contributions would be spent on the industry, even if the rate is raised.
Asked whether reforms would proceed despite opposition from operators, Lee said the outcome will depend on negotiations between the government and industry, as well as whether the proposals originate from the administration or from lawmakers. He described President Lee Jae Myung’s government as moving legislation relatively quickly compared with previous administrations, meaning reforms could pass during its term if they are prioritised, though competing national issues may delay progress.
Kangwon Land, New Casino Talk And Regional Competition
Lee said most of the proposed changes have limited direct relevance to Kangwon Land Inc, the country’s only locals-play casino. However, any increase in Tourism Promotion and Development Fund contributions would apply to Kangwon Land, which already pays into that fund in addition to contributing to the Abandoned Mine Fund.
On anti-money laundering, Lee said he could not assess Kangwon Land’s estimate that stricter proposed KoFIU reporting requirements would lead to a 20% revenue decline. He said the expanded reporting would inconvenience customers and could deter some visits, but noted that the AML proposals are separate from the wider casino reforms.
The debate over a potential second locals-play casino has also surfaced. Lee said Representative Cho Gye-won, who hosted the forum, pointed out that Honam lacks a casino and recently said he would propose a venue in Yeosu, his constituency. President Lee Jae Myung also questioned in a ministry work report why Honam does not have a casino, but Lee said there is no clear evidence that allowing another locals-play property has become government policy.
Legally, he noted, another locals-play licence is possible because approvals are at the government’s discretion. Whether such a casino would be public or private, and whether it is approved at all, would depend on future political and policy decisions.
MGM Osaka Raises Competitive Pressure
Lee said the upcoming opening of MGM Osaka in Japan was mentioned several times during the forum because it could draw both South Korean and Japanese players away from Kangwon Land and the country’s foreigner-only casinos. He described the challenge as extending beyond gaming to South Korea’s broader tourism economy.
In addition, as the regional market grows, Lee said that South Korea would have to enhance its competitive position or run the risk of losing out in the market share. As an advisor, Lee concentrates on the casino integrated resorts, tourism policies, and gaming regulations, and is also part of the K-Tourism Innovation Task Force under the Ministry of Culture, Sports and Tourism.
Read more Is Mauricio Pochettino leaving the USMNT? Latest news on USA coach’s decision after 2026 World Cup
Source: GGR Asia
Comments