Korea faces calls to establish unified task force to combat illegal overseas gambling

Participants of The Korea Times and the Korea Tourism Science Society of Korea's (TOSOK) periodical meeting on development of integrated resorts pose at the newspaper's headquarters in central Seoul, Wednesday. From second left are Kim Jae-kyoung, managing director of The Korea Times' Content & Business Planning Division, Korean Institute of Criminology and Justice former Vice President Park Jun-hwi, TOSOK President Seo Won-seok, National Gambling Control Commission Secretary General Lee Jin-sik, Gangneung-Wonju National University professor Lee Jae-seok, Korea Culture and Tourism Institute research fellow Jeong Kwang-min and Grand Korea Leisure's marketing department leader Tony Kim. Korea Times photo by Choi Won-suk

Tourism experts on Wednesday called for the creation of a centralized task force to address gambling abroad by Korean nationals, alongside the formation of an international regulatory network aimed at promoting the responsible growth of integrated resorts.

The recommendations emerged during a policy forum jointly hosted by The Korea Times and the Tourism Sciences Society of Korea (TOSOK), where academics, government officials and industry leaders gathered to assess the nation’s current approach to overseas gambling by Korean nationals and to explore potential policy interventions. Participants emphasized the need for coordinated oversight and international cooperation to address regulatory blind spots and mitigate the socioeconomic risks associated with unregulated gambling.

Lee Jae-seok, a professor of tourism at Gangneung-Wonju National University, started the event with a keynote address by defining gambling abroad by a Korean national as “the act of a Korean citizen engaging in gambling at overseas casinos or other gambling facilities with the purpose of financial gain.”

While casinos remain one of the most lucrative segments of the global gaming industry, Korea continues to impose strict legal and cultural restrictions on gambling by its own citizens, citing concerns over addiction and other social harms.

Under current regulations, Korean nationals are permitted to gamble only in limited circumstances — typically small wagers placed for entertainment purposes — and only at a handful of government-approved venues, such as a horse racing track in Seoul and Kangwon Land, the country’s sole legal casino open to locals, located in Jeongseon, Gangwon Province. The nation’s 17 other casinos cater exclusively to foreign visitors.

Korea’s Criminal Act further reinforces these restrictions by allowing for the prosecution of nationals who engage in gambling beyond temporary amusement, even when such activity takes place abroad and is legal under local laws.

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Although Korea’s Criminal Act prohibits gambling beyond temporary amusement, the law does not explicitly define what constitutes habitual gambling. However, legal precedents indicate that courts weigh several factors in such cases, including the time and location of the activity, the individual’s social and financial standing and the amount of money wagered.

Those convicted of gambling may face fines of up to 10 million won. In cases deemed habitual, the offense can carry a prison sentence of up to three years or a fine of up to 20 million won.

According to the most recent data from the National Gambling Control Commission, the total value of overseas gambling by Korean nationals was estimated at 4.9 trillion won in 2017 — more than double the figure reported in the commission’s initial survey in 2011. Of that amount, approximately 80 percent, or 3.9 trillion won, was spent in Macao and the Philippines.

However, the professor noted that that accurately assessing the scale, frequency and number of Korean nationals involved in gambling abroad remains difficult, as the line between habitual gamblers and ordinary tourists is often blurred.

Lee Jae-seok, a professor at Gangneung-Wonju National University, delivers a keynote speech during The Korea Times' periodical meeting on development of integrated resorts at the newspaper's headquarters in central Seoul, Wednesday. Korea Times photo by Choi Won-suk

According to the commission’s report, approximately 62 percent of respondents identified themselves as casual tourists who engaged in gambling purely for entertainment, without obsessive tendencies. Meanwhile, between 10 and 13 percent were classified as heavy gamblers, frequently wagering large sums or utilizing exclusive VIP rooms.

The report also found that about 25 percent of those who participated in gambling abroad had developed problematic habits that can lead to a range of physical and psychological harms as well as serious financial, relational and professional consequences. In extreme cases, such behavior has been linked to criminal activities including theft and fraud.

Against this backdrop, the professor called for the establishment of a unified task force and investigative body to oversee and regulate illegal gambling activities involving Korean nationals abroad, suggesting potential collaboration with Interpol to enhance enforcement efforts.

“While Macao and the Philippines remain key destinations for those who engage in overseas gambling, the market is expanding to neighboring countries such as Laos, Cambodia and Vietnam and also quickly evolving online. That’s why we need a permanent regulatory body to comprehensively monitor international gambling activities in the whole ASEAN market,” he said.

TOSOK President Seo Won-seok, a professor of hotel and tourism management at Kyung Hee University who moderated the discussion, echoed Lee’s view on the importance of regulating illegal overseas gambling. Reducing its scale and bringing it within the legal boundaries could ultimately contribute to fostering sustainable growth of integrated resorts here, he said.

Tourism Sciences Society of Korea (TOSOK) President Seo Won-seok, a professor of hotel and tourism management at Kyung Hee University, speaks during The Korea Times' periodical meeting on development of integrated resorts at the newspaper's headquarters in central Seoul, Wednesday. Korea Times photo by Choi Won-suk

Lee Jin-sik, secretary general of the National Gambling Control Commission, stressed that “overseas gambling is not an official legal term and the criteria for distinguishing between tourist activities and gambling remain ambiguous.”

Notably, he underscored the need to accumulate and manage detailed information on the financial aspects of gambling activities, including the flow of cryptocurrency, possibly in cooperation with the Korea Financial Intelligence Unit.

Jeong Kwang-min, a research fellow at the Korea Culture and Tourism Institute, pointed out that the contrast between Korea’s strict anti-gambling regulations and casual and comfortable atmospheres in gaming facilities overseas could have encouraged Koreans to travel abroad and engage in gambling there.

Thus, Korea must more clearly delineate the legal boundaries between leisure gaming and illegal gambling, while deepening its understanding of the motivations, scale and underlying factors driving overseas gambling, he said.

Experts unanimously agreed that it is necessary to strengthen the competitiveness of the domestic integrated resort industry to fundamentally cope with overseas gambling by Koreans.

“The casino industry should be reexamined outside the existing frame of gambling and its contribution to revitalizing the local economy, securing tax revenues and developing the tourism industry should be considered,” said Tony Kim, marketing department leader of Grand Korea Leisure.

Korea needs to provide institutional support to improve service quality in domestic casinos and foster healthy growth of integrated resorts that house casinos, he said.

Also, the country needs up-to-date investigations and data on the actual condition of overseas gambling, experts said.

The commission has only carried out two fact-finding surveys on overseas gambling by Korean nationals — in 2011 and 2017 — and a close study on the actual size, economic impact and mechanisms of overseas gambling is urgently needed.

“We need to expand field-based research such as precedent analysis, interviews with gamblers and study on the evolution of gambling-related criminal organizations,” said Park Jun-hwi, former vice president of the Korean Institute of Criminology and Justice.