South Korean Casinos Seek to Revoke Five-Year License Plan

South Korean casinos have asked the government to revoke plans to introduce a system of renewable five-year licenses and increase their contribution to a central tourism fund. Since the Ministry of Culture, Sports and Tourism announced its plans last month, casino operators' stock has fallen, and financial analysts have adjusted their forecasts downward. The ministry intends to raise the percentage of revenue that operators must pay to the Tourism Promotion and Development Fund from the current 10% to 15%. Additionally, it proposes to eliminate existing permanent concessions and establish a five-year licensing system that would include new compliance checks and application protocols.

Impact on Employment

Casino-related groups have expressed that if operators end up paying more, jobs could be at risk, according to the South Korean media outlet Dailian. "If contributions to the fund increase, companies will have no choice but to cut costs," stated Hwang Joo-ho, Secretary General of the Paradise City Union. This could lead to labor cost cuts, fewer hires, and reductions in wages and benefits.

The plan to increase contributions comes after a record year for tourism in South Korea. Visitor numbers and revenue have risen at several of the country's major casinos, including Jeju Dream Tower. The stock of the operator Paradise has fallen over 21% in the past four weeks.

Ministry Proposals

The ministry's proposals would require amendments to the Tourism Promotion Act. A new high-revenue category for the largest casino operators is planned, along with a mandatory pre-verification process for companies or individuals wishing to become major or minor shareholders of South Korean casino operators. While the proposals are far from becoming law, casinos claim that some investors are already nervous and looking to withdraw from the market.

Lee Jang-sung, Finance Director of Jeju Dream Tower operator Lotte Tourism Development, notes that the increase in funds could impact both new investments and existing financing. "Institutional investors who invested $50 million in convertible bonds have requested early redemption," Lee said.

Union Opinions

The National Council of Casino Unions, which includes representatives from the largest casinos exclusive to foreign passport holders, has also called for legislative intervention. The council warned that the rate of increase in contributions to the fund could negatively impact workers, weakening working conditions. "The risks of the increase go beyond a simple rising cost for operators," explained Kang Byung-doo, president of the Paradise Casino union, adding to the lack of consultation with employees.

Unions assert that casino staff is not the only group that could be affected. Many South Korean casinos operate in integrated complexes, so hotel, event, and leasing company employees could also face rising costs or job uncertainty.

Financial Concerns

Critics add that the increase could lead operators to face substantial financial difficulties, as the proposed contributions are based on gross revenue without considering net profits. Even under the current 10% rule, Inspire Casino in Incheon paid nearly $20 million to the fund last year, despite recording an operating loss of $30 million in 2025. Recently, the Governor of North Jeolla Province in South Korea proposed a controversial plan to build a new casino in reclaimed land, requesting admission for national passport holders.