South Korea lets casinos borrow for construction, a first since 1998

New rules let casino operators tap state tourism funds for building work for the first time since 1998.

The hit

South Korea’s Ministry of Culture, Sports & Tourism has opened its Tourism Promotion & Development Fund to casino construction loans for the first time since the scheme launched in 1998, according to Yogonet. Revised guidelines issued August 28 let operators borrow for new builds, expansions & renovations, not just operating costs as before.

Why it matters

Casino operators previously could only tap the fund for running costs, capped at 50% of the prior year’s operating expenses & KRW3 billion. The expansion lets operators like Kangwon Land apply for facility financing, with larger operators paying 3.80% annual interest, but the timing coincides with talks on raising the foreigner-only casino levy & introducing shorter licence terms, which industry figures say could offset the benefit.

The record

Construction/expansion loan cap	KRW15 billion (US$11m) general maximum; large & medium-sized firms limited to 75% of this
Renovation loan cap	KRW8 billion general maximum; large & medium-sized firms limited to 75% of this
Small operator facility loan cap	KRW20 billion (US$15m) in tourism zones
Q4 total lending cap	KRW150 billion (Ministry of Culture, Sports & Tourism)

What happens next

Watch for the ministry’s decision on raising the foreigner-only casino levy to 15% of revenue from 10% & on five-year licence renewals. Industry sources told GGRAsia the timetable for these reforms could be delayed amid consultations.

Sources: South Korea expands tourism fund loans for casino operators for the first time since 1998

Named in this story? Reply to newsdesk@infobets.com & we publish it.

18+. Betting involves risk. If gambling is a problem for you or someone close to you, help is available.