South Korea is expanding facility loans from the Tourism Promotion and Development Fund to include casino operators. It is the first time casino businesses have been able to borrow money for new construction or expansion since the fund's facility loan program began in 1998. The move is seen as an effort to ease industry concerns over a heavier financial burden, as the government pushes a policy overhaul that includes raising the casino sector's contribution rate to the tourism fund and requiring license renewals every five years.
According to reporting by The Seoul Economic Daily on the 18th, the Ministry of Culture, Sports and Tourism revised its guidelines for tourism fund loan support for the second half of 2026 on the 28th of last month, adding casino operations to the list of businesses eligible for facility loans. The revised guidelines took effect with the fourth-quarter loan round, which began accepting applications on the 31st of last month.
Until now, casino operators could borrow only working capital, capped at 50% of their operating expenses over the previous year and a maximum of 3 billion won. Renovation of gaming floors and purchases of new equipment were temporarily supported within that ceiling, but operators could not borrow separate facility funds for new construction or expansion. Under the revised guidelines, casino operators can now borrow up to 15 billion won for new construction or expansion and up to 8 billion won for renovations, on top of working capital.
The timing of the expanded support coincides with the government's overhaul of casino regulations. The government is pushing to raise the ceiling on the tourism fund contribution rate for foreign-only casino operators under the Tourism Promotion Act to 15% of revenue from the current 10%. It is also reviewing a system that would require operators to renew their business licenses every five years. The government's position is that the current levy structure needs to be adjusted to reflect the growth of the casino industry.
Industry officials worry that a higher contribution rate would cut operating profit and reduce their capacity for facility investment, while renewing licenses every five years could make long-term financing more difficult. They point in particular to an integrated resort including a casino set to open in Osaka, Japan, in the fall of 2030, which they expect to intensify competition for casino customers across Asia.
The industry views the wider facility loan support positively but questions whether it is tied to tighter regulation down the road. "Extending the scope of loans to facility funds is a positive," an industry official said. "But the discussions on raising the contribution rate and introducing license renewals are moving forward at the same time, so we are concerned that the expanded support may be a carrot for tighter regulation."
