The South Korean government is throwing a lifeline to the country’s casino operators, whose revenues have been slashed due to the Covid-19 pandemic. The country’s Ministry of Culture, Sports and Tourism has postponed the deadline payment of sales taxes.
Under Korea’s Tourism Promotion Act, all casino operators are required to pay a tax of around 10 percent on sales twice a year, in June and September to the Tourism Promotion Development Fund.
With revisions to the Tourism Promotion Act Enforcement Decree, embattled operators up to one year to make good on the payments.
“You have to pay the payment in June and September, but if the damage is severe due to the decrease in sales, the payment deadline is deferred through deliberation,” an official said.
In 2019, those taxes amounted to a combined KRW284.9 billion (US$251 million) from Korea’s 17 casinos, however the Korea Casino Tourism Association has reported that sales from Korea’s 16 foreigner-only casino, which excludes Kangwon Land, fell 59 percent year-on-year from KRW1.45 trillion (US$1.28 billion) in 2019 to KRW598.3 billion (US$527 million) in 2020. Sales at Kangwon Land, the only Korean casino at which locals are allowed to gamble, fell 68.5 percent year-on-year to KRW478.58 billion (US$433 million).
