Korea risks falling behind as Japan bets on casino-led tourism

Participants pose during a roundtable on ways to strengthen the competitiveness of Korea’s integrated resorts at The Korea Times office in Jung-gu, central Seoul, Monday. From left are Kim Eun-ju, researcher at the Tourism Sciences Society of Korea; Kim Jae-kyoung, managing director of content and business planning at The Korea Times; Yoon Tae-hwan, professor in the Department of Hotel and Convention Management at Dong-Eui University; Seo Won-seok, dean of the College of Hotel and Tourism Management at Kyung Hee University and the president of the Tourism Sciences Society of Korea; Park Jun-hwi, vice president of the Korea Institute of Criminology and Justice; Lee Jae-seok, associate professor of tourism management at Gangneung-Wonju National University; and Lee Min-jae, board director of the Integrated Resort Tourism Research Center. Korea Times photo by Shim Hyun-chul.

As Japan prepares to debut its first integrated resort in 2030 in a move expected to draw a surge of regional visitors, The Korea Times gathered experts to examine how South Korea might build a more competitive and sustainable casino sector on Monday.

Integrated resorts (IRs), which are anchored by casinos but designed to draw families and a wider mix of tourists with hotels, convention centers, shopping malls and entertainment venues, have emerged as a global model for boosting tourism and revitalizing local economies.

Experts called on the Korean government to acknowledge the value of integrated resorts and the broader casino industry, urging regulatory reforms to sharpen global competitiveness.

“Casinos were once seen as a last-ditch tool for reviving weak local economies, but they have evolved into high-value tourism assets, shifting from VIP-focused venues to large cultural and entertainment hubs for the general public,” said Yoon Tae-hwan, professor of hotel and convention management at Dong-eui University. “That shift gave rise to IRs.”

In 2016, Japan passed a law to advance integrated resort development, and the next year created a task force headed by Prime Minister Shinzo Abe, with Chief Cabinet Secretary Yoshihide Suga as deputy. The government signed off on Osaka’s IR plan in 2023, and MGM Osaka broke ground this April.

The push to fast-track casino development in Japan has sounded alarm bells in Korea, where experts fear the move will deal a heavy blow to the country’s own casino industry.

Lee Min-jae, board director of the Integrated Resort Tourism Research Center, warned that Korea’s underdeveloped casino industry already loses out on demand to the Philippines and Macau, and will face even greater pressure once casinos open in Japan.

“Our casino industry is still focused narrowly on tax revenue and job creation,” Lee said. “Globally, the trend has shifted toward IRs, which are seen as key drivers of tourism and regional growth, but Korea has fallen behind. We need to catch up quickly.”

Park Jun-hwi, vice president of the Korea Institute of Criminology and Justice, said state-run companies, though inactive so far, are well-positioned under central ministries to take a more proactive role and should take greater responsibility for developing the industry.

Building on that point, Lee Jae-seok, associate professor of tourism management at Gangneung-Wonju National University, noted that the absence of a unified authority to oversee the casino sector remains a structural problem.

Currently, the Ministry of Culture, Sports and Tourism grants casino licenses, while the National Gambling Control Commission under the Prime Minister’s Office acts as the regulator.

“Unlike Japan or Singapore, Korea lacks a centralized agency. The National Gambling Control Commission’s role is too limited and dispersed to be effective. We need a single body that can both regulate and lead,” Lee added.

Seo Won-seok, dean of the College of Hotel and Tourism Management at Kyung Hee University and the president of the Tourism Sciences Society of Korea, stressed the need for clearer policy direction.

“Whether integrated resorts are pursued as a tool to revitalize underdeveloped regions or positioned as core tourism assets will make a significant difference. This should be a key topic in upcoming discussions,” he said.