South Korea's Ministry of Culture, Sports, and Tourism has proposed raising casino operators' contributions to the Tourism Promotion and Development Fund from 10% to 15% of revenue and replacing indefinite concessions with five-year permits subject to regular review. Operators' share prices fell after the plans were announced last month, and financial analysts cut earnings forecasts.
Unions warn of job cuts. 'If contributions rise, companies will be forced to cut costs,' said Hwang Joo-ho, general secretary of the Paradise City union. 'This will most likely lead to cuts in wages, benefits and hiring.' Lee Jang-sung, finance director at Jeju Dream Tower operator Lotte Tourism Development, said institutional investors have already demanded early redemption of $50 million in convertible bonds and banks view refinancing negatively.
Operators criticise the revenue-based levy for ignoring profitability. Inspire Casino in Incheon paid nearly $20 million into the fund last year despite posting a $30 million operating loss for fiscal 2025. The National Council of Casino Trade Unions has sent a petition to lawmakers, noting that integrated resorts mean the impact will extend beyond dealers to hotel staff, event venues and tenants.
The proposals require amendments to the Tourism Promotion Act and are far from adoption, but the market has already reacted. Kang Byung-doo, head of the Paradise Casino union, noted that the ministry consulted operators but not workers.
