South Korea Opens Its Tourism Fund to Casino Construction Loans of Up to ₩15bn for the First Time Since 1998

Korean casino operators can now borrow from the state tourism fund to build or expand, not just to cover running costs. The loans arrive as the government moves to raise the casino levy ceiling by half and make licences renewable every five years, and the industry is asking whether the carrot comes before the stick.

• South Korea's Ministry of Culture, Sports and Tourism amended its tourism fund loan guidelines for the second half of 2026 on 28 August to let casino operators borrow facility funds, according to Seoul Economic Daily
• Operators can now borrow up to ₩15 billion, approximately $11 million, for new construction or expansion and up to ₩8 billion, about $5.9 million, for renovation, on top of their existing operating loans
• It is the first time casinos have been able to borrow from the Tourism Promotion and Development Fund for construction since its facility loans began in 1998; until now they were limited to operating loans of 50% of a year's costs, capped at ₩3 billion
• The change applies to fourth-quarter loans, for which applications opened on 31 August
• It comes as the government pursues a rise in the levy ceiling for foreigner-only casinos from 10% to 15% of revenue and five-year renewable licences, with Osaka's integrated resort due to open in autumn 2030

From Working Capital to Bricks and Mortar

The Ministry of Culture, Sports and Tourism (MCST) changed its "2026 second-half Tourism Promotion and Development Fund loan support guidelines" on 28 August to add casinos as eligible borrowers for facility funding, Seoul Economic Daily reported on 17 and 18 September. The amended guidelines apply from the fourth-quarter loan round, which opened for applications on 31 August.

Until now, South Korea's casino operators could borrow from the fund only for operating costs, up to 50% of the previous year's operating expenses and no more than ₩3 billion, approximately $2.2 million. For a limited period, renovations and new gaming equipment could also be financed, but only within that same cap. Under the new guidelines, operators can borrow separately for facilities: up to ₩15 billion for new construction or expansion and up to ₩8 billion for renovation. According to the newspaper, it is the first time casino operators have been able to borrow for new building since the fund's facility loan programme began in 1998.

The loan terms, interest rate and total amount set aside for casinos have not been reported, and iGaming Times has not found a public announcement of the change by the ministry.

A Loan Offered While the Levy Rises

The timing is what the industry is reading most closely. The government is pursuing an amendment to the Tourism Promotion Act that would raise the ceiling on the fund contribution paid by foreigner-only casino operators from 10% to 15% of revenue, and is also considering making casino licences subject to renewal every five years. The ministry published an explanatory note on both proposals on 3 August, and its position is that the levy structure needs adjusting because the casino industry has grown, according to Seoul Economic Daily.

Operators have warned that a higher levy would cut the profits they reinvest, and that five-year licences would make long-term financing harder, according to Seoul Economic Daily. They also point to competition: Japan's first integrated resort, in Osaka, is scheduled to open in autumn 2030, and operators fear Asian casino customers will shift there. An unnamed industry official told the newspaper, in a translation of the Korean, that extending the loans to facilities was "positive", but added that "with the levy increase and the renewal licensing system being discussed together, we are concerned that expanded support could be a carrot for tighter regulation".

The Loans Are Small Next to What Competing With Osaka Costs

₩15 billion is a meaningful sum for a mid-sized casino refurbishment, but it is small against the capital that building an integrated resort to compete with Osaka would demand. The facility loans are best read as a cash-flow measure for existing operators rather than a policy to build new capacity. That matters for the foreigner-only operators such as Grand Korea Leisure, whose margins would absorb any levy increase: cheaper state borrowing for a new floor or an expansion softens the blow of a higher ceiling on what they pay into the same fund. The fund effectively lends back part of what the levy collects.

Five-Year Licences Are the Bigger Change

The levy rise is a cost operators can model. Renewable licences are a different kind of risk, because they change what a lender sees. A casino licence with no fixed term supports long-dated borrowing against the business; one that must be renewed every five years puts a regulatory decision in the middle of every financing, and lenders will price it. A state loan programme is one way to fill that gap, and it gives the ministry a lever over how operators invest. Whether the industry's suspicion is right, that the loans are a sweetener for tighter rules, will be clearer when the amendment bill sets the renewal criteria. Until then, operators have been given a new source of money at the same time as a reason to need it.