Culture ministry clarifies casino tourism fund rate hike

The culture ministry said Wednesday that recent media reports claiming a flat increase in the casino industry's tourism fund contribution rate are inaccurate. The proposed adjustment follows a progressive structure based on revenue brackets rather than applying a uniform higher rate to all sales.

Contrary to claims that the rate would rise from 10 percent to 15 percent across the board, the increased burden will apply only to newly established high-revenue sections. Under the current system, operators pay 1 percent on revenue up to 1 billion won, 5 percent on amounts between 1 billion won and 10 billion won, and 10 percent on sales exceeding 10 billion won.

The ministry also rejected assertions that three major casino operators would incur additional costs of approximately 90 billion won. It emphasized that the contribution is deducted from gross revenue as an operating cost, not paid out of operating profit.

Officials noted that while total casino revenue has grown 10.3 times since the fund system was introduced in 1995, the contribution burden rate has remained unchanged for three decades. Aligning the contribution obligations with the expanded scale of the industry serves to normalize the original legislative intent behind licensing private operators.

Funds collected through this mechanism, alongside departure taxes, are reinvested into various tourism sectors to foster industry growth and attract foreign visitors. The ministry plans to finalize the specific revised brackets and rates through the Enforcement Decree after holding discussions with industry stakeholders and experts.