Korea Gaming: Proposed tourism fund hike adds a new regulatory overhang

Research evidence excerpt

Korea Gaming: Proposed tourism fund hike adds a new regulatory overhang

Global Research

15 July 2026ab

Korea Gaming Equities

KoreaProposed tourism fund hike adds a new

regulatory overhang Leisure Goods & Services

Ju Seong Lee

Analyst

juseong.lee@ubs.com

Gov't reportedly considering raising the tourism fund contribution cap to 15% +82-2-3702 8106

On 15 July, local media reported that the government is considering raising the Tourism Jae Hyung Choi

Promotion Fund contribution cap for foreigner-only casinos from 10% to 15%. The Analyst

proposal appears to form part of broader amendment to the Tourism Promotion Act, jaehyung.choi@ubs.com

which would also introduce periodic license renewals and fit-and-proper reviews for +82-2-3702 8172

changes in controlling shareholders. The government and lawmakers reportedly plan to

introduce the amendment by early August, although this would represent the timing of

the bill's introduction rather than implementation.

Why now?

In our view, the proposed fund hike should be viewed as part of a broader overhaul of

Korea's casino regulatory framework rather than as a standalone increase in the industry

levy. Recent changes in control at Inspire following its debt restructuring, together with

the Jeju Sun Hotel casino transaction, highlighted gaps in the current framework, where

the government has limited ability to reassess a new controlling shareholder after a

licence has been granted. With casino revenue and foreign visitor traffic also reaching

new highs, the government appears to be seeking both tighter regulatory oversight and

a larger industry contribution to broader tourism development. If implemented, this

would mark the first increase in the Tourism Promotion Fund contribution cap since

1995.