South Korea has expanded its Tourism Promotion and Development Fund loan program to allow casino operators to finance construction, expansion, and renovation projects for the first time since the scheme was introduced in 1998.
Under revised Ministry of Culture, Sports and Tourism guidelines issued August 28, casino operators can borrow up to KRW15 billion (US$11 million) for new construction or expansion and KRW8 billion ($5.8 billion) for renovations. Large and medium-sized companies are limited to 75% of those amounts, while smaller companies operating in designated tourism zones or tourism complexes can qualify for facility loans of up to KRW20 billion ($15 million).
Facility loans for larger operators carry an annual interest rate of 3.80%. Applicants for construction or expansion financing must already hold the required casino-business and building approvals, and operators must maintain their gaming licenses after construction or face possible repayment demands.
Previously, casinos could borrow only for operating expenses, capped at 50% of the previous year’s operating costs and KRW3 billion ($2.2 billion). Renovations and purchases of new machine models had also been temporarily covered within that limit.
Kangwon Land Inc., which operates South Korea’s only casino permitted to serve local customers, is eligible for the new financing alongside foreigner-only casino operators. In April 2025, Kangwon Land estimated the cost of its “K-HIT 1.0” resort-expansion project at KRW3.00 billion.
The ministry has capped total Tourism Promotion and Development Fund lending at KRW150 billion for the fourth quarter, when the revised system takes effect. Applications were filed at the end of last month. Going forward, 70% of quarterly lending will be allocated outside Seoul.
The expansion comes as the government considers raising the maximum tourism fund levy on foreigner-only casinos to 15% of revenue from 10% and introducing five-year casino license renewals.
Industry representatives have warned that a higher levy could reduce funds available for investment, while shorter license periods could make long-term financing more difficult. They have also cited increasing regional competition ahead of the planned opening of an integrated resort in Osaka, Japan, in fall 2030.
“Broadening the scope of loans to include facility funds is a positive step,” an industry official told Seoul Economic Daily. “But because the levy increase and the license renewal system are being discussed at the same time, we are concerned that the expanded support could become a carrot for tighter regulation.”
Earlier this month, industry sources told GGRAsia that the timetable for the regulatory reforms, including possible time-limited licenses for foreigner-only casinos, could be delayed amid consultations.