South Korea may delay proposed casino reforms
Industry representatives have warned that the measures could discourage investment and affect the country’s regional competitiveness.
South Korea.- Proposed casino regulatory changes in South Korea could be delayed as the Ministry of Culture, Sports and Tourism continues discussions with operators. The ministry had initially planned to submit its amendment in September, but the timetable could be affected by the Chuseok holiday from September 24 to 27 and the National Assembly’s annual audit of the government, scheduled from October 6 to 27.
A ministry official told MTN that meetings with individual operators are continuing and that the proposal could be submitted before the end of the year.
As proposed, the reforms would raise the maximum contribution to the Tourism Promotion and Development Fund from 10 to 15 per cent of annual gross gaming revenue (GGR) and introduce a five-year licensing system. However, the industry has raised concerns over the potential impact on investment. Shin Jong-ho, secretary general of the Korea Casino Association, told MTN that a higher contribution could discourage investment in casino facilities and development.
The government is reportedly considering transitional arrangements for casinos that have recently obtained licences to limit disruption from the new framework. The proposed 15 per cent rate would not apply to all casino revenue. The ministry plans to establish a revenue band, with earnings above a threshold yet to be determined subject to the increased contribution.
The ministry says the reforms are needed to modernise a regulatory framework that has remained largely unchanged for nearly 30 years. Five-year licensing reviews would assess regulatory compliance, financial viability and management competence.
