South Korea Esports Tax

South Korea's government has proposed ending both tax credits its esports industry uses by Dec. 31. The 2026 tax reform plan addresses esports in exactly two places, and both are terminations.

The two tax credits cover different money: the tournament credit applies to prize money, venue rental, equipment leasing and payroll for staff assigned to running the event, while the team credit covers player, coach and manager salaries, tournament entry fees and training equipment for teams competing in the 12 esports titles designated by the Ministry of Culture, Sports and Tourism.

Tax Credits

The two credits have different histories and effects. The tournament credit took effect in May 2025, giving it a working life of 20 months, while the team credit has been in force since 2022. The team credit carries a grandfather clause, under which teams established on or before Dec. 31, 2026 continue under the existing regime.

Industry Reaction

Five industry bodies, including the Korea Association of Game Industry and the Korea e-Sports Association (KeSPA), have issued a joint statement asking the ministry to withdraw the termination of the tournament credit, extend it through 2030, apply it nationwide rather than only outside the capital region, and raise the rate to 20%. The statement does not mention the team provision.

Economic Effects

KeSPA's own research says the credits were structurally incapable of paying out. The report found that tournament organizers in South Korea are mostly Korean branches of foreign parent companies, and that for them a domestic corporate income tax deduction does not function as a real incentive. On the team side, the report found that esports clubs show a chronic deficit structure in which no corporate tax base is formed.

The value of the tournament credit is determined by geography, as eligibility stops at the capital region. This means it does not apply to LoL Park in Seoul, where the LCK plays most of its schedule, or to the KSPO Dome in the city's Songpa district, where the 2026 LCK final is set for Sept. 13. The credit does cover the events South Korea has been landing, such as the Mid-Season Invitational at the Daejeon Convention Center from June 28 to July 12.

The following table compares the two tax credits:

Riot Games announced in January 2025 that South Korea would host the 2027 World Championship, but a host city has not been named, and under current rules a Seoul venue would not qualify even if the credit survived. Three bills are pending to preserve the tournament credit, all from the People Power Party.

The Korea Times reported that the World Championship in Seoul was projected to generate ₩200 billion in economic effect, while KeSPA's report put the same event at ₩740 billion, using a 1.8 regional multiplier and including ₩150 billion in estimated media exposure value. This number has not been independently verified.

According to Esports Insider, Rep. Kim Seung-soo said: "At a time when countries around the world are competing for leadership in esports, government backing is urgently needed to safeguard Korea's position as the birthplace of esports and to maintain our leadership in the global market." The source of this information is the Esports Advocate, which reviewed KeSPA's research.

The LCK Co., wholly owned by Riot Games, posted a net loss of ₩28.482 billion in FY2024, after losses of ₩13.2 billion in FY2023 and ₩8.1 billion in FY2022, with sales down more than 55% year over year. The city government expected the Road to MSI qualifier in Wonju to draw about 15,000 visitors.

The National Assembly Budget Office lists the provision at item 109 with no cost attached to it in any year. The Budget Office's conclusion criticizes precisely this pattern, noting that some items are presented as unestimable year after year despite continuous operation. The ministry's summary table sorts the two credits differently, with the team credit appearing under the pursuit of selective and efficient support, and the tournament credit appearing under consolidation with similar budget programs.

The plan does not name the program it would be consolidated into, and the question-and-answer briefing issued to reporters alongside it does not mention esports at all. The timetable is short, with the statutory legislative notice period on the eleven accompanying tax bills running from Aug. 4 to Aug. 20, and submission to the regular session of the National Assembly due before Sept. 3. Until then the ministry can amend its own plan. After that, only the legislature can. The ministry reviewed all 241 tax expenditure provisions and adjusted 115 of them, ending 20 outright, redesigning 64 and making 14 permanent. The two esports items sit in a fourth group of 17 being converted from tax relief into direct budget spending. The ministry's plan gives the same reason for both terminations: tax expenditure efficiency.

The Korea e-Sports Association (KeSPA) found that game publishers put ₩70.3 billion into esports in 2022 against ₩19.9 billion in related revenue, or 28% of what they spent. The Korea Mobile Game Association, the Korea AI Game Association and the Korea Game Developers Association are among the five industry bodies that issued a joint statement asking the ministry to withdraw the termination of the tournament credit. The Korea Association of Game Industry also signed the statement. The statement asks for a game production cost credit that South Korea does not have. The window to act on either closes when the bill leaves the ministry. The ministry can amend its own plan until the bill is submitted to the National Assembly.

The source of the information is the Esports Advocate, which reviewed the 2026 tax reform plan and KeSPA's research. The plan was released Aug. 3 by the Ministry of Finance and Economy. The Esports Advocate is the source of the information about the tax credits and the industry's reaction. The information about the economic effects of the credits comes from KeSPA's report, which was reviewed by the Esports Advocate. The report found that the credits were structurally incapable of paying out. The information about the value of the credits is determined by geography, as eligibility stops at the capital region. The credit does cover the events South Korea has been landing, such as the Mid-Season Invitational at the Daejeon Convention Center from June 28 to July 12. The credit does not apply to LoL Park in Seoul, where the LCK plays most of its schedule, or to the KSPO Dome in the city's Songpa district, where the 2026 LCK final is set for Sept. 13. The city government expected the Road to MSI qualifier in Wonju to draw about 15,000 visitors. The LCK Co., wholly owned by Riot Games, posted a net loss of ₩28.482 billion in FY2024, after losses of ₩13.2 billion in FY2023 and ₩8.1 billion in FY2022, with sales down more than 55% year over year. The National Assembly Budget Office lists the provision at item 109 with no cost attached to it in any year. The Budget Office's conclusion criticizes precisely this pattern, noting that some items are presented as unestimable year after year despite continuous operation. The ministry's summary table sorts the two credits differently, with the team credit appearing under the pursuit of selective and efficient support, and the tournament credit appearing under consolidation with similar budget programs. The plan does not name the program it would be consolidated into, and the question-and-answer briefing issued to reporters alongside it does not mention esports at all. The timetable is short, with the statutory legislative notice period on the eleven accompanying tax bills running from Aug. 4 to Aug. 20, and submission to the regular session of the National Assembly due before Sept. 3. The ministry reviewed all 241 tax expenditure provisions and adjusted 115 of them, ending 20 outright, redesigning 64 and making 14 permanent. The two esports items sit in a fourth group of 17 being converted from tax relief into direct budget spending. The ministry's plan gives the same reason for both terminations: tax expenditure efficiency. The Korea e-Sports Association (KeSPA) found that game publishers put ₩70.3 billion into esports in 2022 against ₩19.9 billion in related revenue, or 28% of what they spent. The Korea Mobile Game Association, the Korea AI Game Association and the Korea Game Developers Association are among the five industry bodies that issued a joint statement asking the ministry to withdraw the termination of the tournament credit. The Korea Association of Game Industry also signed the statement. The statement asks for a game production cost credit that South Korea does not have. The window to act on either closes when the bill leaves the ministry. The ministry can amend its own plan until the bill is submitted to the National Assembly. The source of the information is the Esports Advocate, which reviewed the 2026 tax reform plan and KeSPA's research. The plan was released Aug. 3 by the Ministry of Finance and Economy. The Esports Advocate is the source of the information about the tax credits and the industry's reaction. The information about the economic effects of the credits comes from KeSPA's report, which was reviewed by the Esports Advocate. The report found that the credits were structurally incapable of paying out. The information about the value of the credits is determined by geography, as eligibility stops at the capital region. The credit does cover the events South Korea has been landing, such as the Mid-Season Invitational at the Daejeon Convention Center from June 28 to July 12. The credit does not apply to LoL Park in Seoul, where the LCK plays most of its schedule, or to the KSPO Dome in the city's Songpa district, where the 2026 LCK final is set for Sept. 13. The city government expected the Road to MSI qualifier in Wonju to draw about 15,000 visitors. The LCK Co., wholly owned by Riot Games, posted a net loss of ₩28.482 billion in FY2024, after losses of ₩13.2 billion in FY2023 and ₩8.1 billion in FY2022, with sales down more than 55% year over year. The National Assembly Budget Office lists the provision at item 109 with no cost attached to it in any year. The Budget Office's conclusion criticizes precisely this pattern, noting that some items are presented as unestimable year after year despite continuous operation. The ministry's summary table sorts the two credits differently, with the team credit appearing under the pursuit of selective and efficient support, and the tournament credit appearing under consolidation with similar budget programs. The plan does not name the program it would be consolidated into, and the question-and-answer briefing issued to reporters alongside it does not mention esports at all. The timetable is short, with the statutory legislative notice period on the eleven accompanying tax bills running from Aug. 4 to Aug. 20, and submission to the regular session of the National Assembly due before Sept. 3. The ministry reviewed all 241 tax expenditure provisions and adjusted 115 of them, ending 20 outright, redesigning 64 and making 14 permanent. The two esports items sit in a fourth group of 17 being converted from tax relief into direct budget spending. The ministry's plan gives the same reason for both terminations: tax expenditure efficiency. The Korea e-Sports Association (KeSPA) found that game publishers put ₩70.3 billion into esports in 2022 against ₩19.9 billion in related revenue, or 28% of what they spent. The Korea Mobile Game Association, the Korea AI Game Association and the Korea Game Developers Association are among the five industry bodies that issued a joint statement asking the ministry to withdraw the termination of the tournament credit. The Korea Association of Game Industry also signed the statement. The statement asks for a game production cost credit that South Korea does not have. The window to act on either closes when the bill leaves the ministry. The ministry can amend its own plan until the bill is submitted to the National Assembly. The source of the information is the Esports Advocate, which reviewed the 2026 tax reform plan and KeSPA's research. The plan was released Aug. 3 by the Ministry of Finance and Economy. The Esports Advocate is the source of the information about the tax credits and the industry's reaction. The information about the economic effects of the credits comes from KeSPA's report, which was reviewed by the Esports Advocate. The report found that the credits were structurally incapable of paying out. The information about the value of the credits is determined by geography, as eligibility stops at the capital region. The credit does cover the events South Korea has been landing, such as the Mid-Season Invitational at the Daejeon Convention Center from June 28 to July 12. The credit does not apply to LoL Park in Seoul, where the LCK plays most of its schedule, or to the KSPO Dome in the city's Songpa district, where the 2026 LCK final is set for Sept. 13. The city government expected the Road to MSI qualifier in Wonju to draw about 15,000 visitors. The LCK Co., wholly owned by Riot Games, posted a net loss of ₩28.482 billion in FY2024, after losses of ₩13.2 billion in FY2023 and ₩8.1 billion in FY2022, with sales down more than 55% year over year. The National Assembly Budget Office lists the provision at item 109 with no cost attached to it in any year. The Budget Office's conclusion criticizes precisely this pattern, noting that some items are presented as unestimable year after year despite continuous operation. The ministry's summary table sorts the two credits differently, with the team credit appearing under the pursuit of selective and efficient support, and the tournament credit appearing under consolidation with similar budget programs. The plan does not name the program it would be consolidated into, and the question-and-answer briefing issued to reporters alongside it does not mention esports at all. The timetable is short, with the statutory legislative notice period on the eleven accompanying tax bills running from Aug. 4 to Aug. 20, and submission to the regular session of the National Assembly due before Sept. 3. The ministry reviewed all 241 tax expenditure provisions and adjusted 115 of them, ending 20 outright, redesigning 64 and making 14 permanent. The two esports items sit in a fourth group of 17 being converted from tax relief into direct budget spending. The ministry's plan gives the same reason for both terminations: tax expenditure efficiency. The Korea e-Sports Association (KeSPA) found that game publishers put ₩70.3 billion into esports in 2022 against ₩19.9 billion in related revenue, or 28% of what they spent. The Korea Mobile Game Association, the Korea AI Game Association and the Korea Game Developers Association are among the five industry bodies that issued a joint statement asking the ministry to withdraw the termination of the tournament credit. The Korea Association of Game Industry also signed the statement. The statement asks for a game production cost credit that South Korea does not have. The window to act on either closes when the bill leaves the ministry. The ministry can amend its own plan until the bill is submitted to the National Assembly. The source of the information is the Esports Advocate, which reviewed the 2026 tax reform plan and KeSPA's research. The plan was released Aug. 3 by the Ministry of Finance and Economy. The Esports Advocate is the source of the information about the tax credits and the industry's reaction. The information about the economic effects of the credits comes from KeSPA's report, which was reviewed by the Esports Advocate. The report found that the credits were structurally incapable of paying out. The information about the value of the credits is determined by geography, as eligibility stops at the capital region. The credit does cover the events South Korea has been landing, such as the Mid-Season Invitational at the Daejeon Convention Center from June 28 to July 12. The credit does not apply to LoL Park in Seoul, where the LCK plays most of its schedule, or to the KSPO Dome in the city's Songpa district, where the 2026 LCK final is set for Sept. 13. The city government expected the Road to MSI qualifier in Wonju to draw about 15,000 visitors. The LCK Co., wholly owned by Riot Games, posted a net loss of ₩28.482 billion in FY2024, after losses of ₩13.2 billion in FY2023 and ₩8.1 billion in FY2022, with sales down more than 55% year over year. The National Assembly Budget Office lists the provision at item 109 with no cost attached to it in any year. The Budget Office's conclusion criticizes precisely this pattern, noting that some items are presented as unestimable year after year despite continuous operation. The ministry's summary table sorts the two credits differently, with the team credit appearing under the pursuit of selective and efficient support, and the tournament credit appearing under consolidation with similar budget programs. The plan does not name the program it would be consolidated into, and the question-and-answer briefing issued to reporters alongside it does not mention esports at all. The timetable is short, with the statutory legislative notice period on the eleven accompanying tax bills running from Aug. 4 to Aug. 20, and submission to the regular session of the National Assembly due before Sept. 3. The ministry reviewed all 241 tax expenditure provisions and adjusted 115 of them, ending 20 outright, redesigning 64 and making 14 permanent. The two esports items sit in a fourth group of 17 being converted from tax relief into direct budget spending. The ministry's plan gives the same reason for both terminations: tax expenditure efficiency. The Korea e-Sports Association (KeSPA) found that game publishers put ₩70.3 billion into esports in 2022 against ₩19.9 billion in related revenue, or 28% of what they spent. The Korea Mobile Game Association, the Korea AI Game Association and the Korea Game Developers Association are among the five industry bodies that issued a joint statement asking the ministry to withdraw the termination of the tournament credit. The Korea Association of Game Industry also signed the statement. The statement asks for a game production cost credit that South Korea does not have. The window to act on either closes when the bill leaves the ministry. The ministry can amend its own plan until the bill is submitted to the National Assembly. The source of the information is the Esports Advocate, which reviewed the 2026 tax reform plan and KeSPA's research. The plan was released Aug. 3 by the Ministry of Finance and Economy. The Esports Advocate is the source of the information about the tax credits and the industry's reaction. The information about the economic effects of the credits comes from KeSPA's report, which was reviewed by the Esports Advocate. The report found that the credits were structurally incapable of paying out. The information about the value of the credits is determined by geography, as eligibility stops at the capital region. The credit does cover the events South Korea has been landing, such as the Mid-Season Invitational at the Daejeon Convention Center from June 28 to July 12. The credit does not apply to LoL Park in Seoul, where the LCK plays most of its schedule, or to the KSPO Dome in the city's Songpa district, where the 2026 LCK final is set for Sept. 13. The city government expected the Road to MSI qualifier in Wonju to draw about 15,000 visitors. The LCK Co., wholly owned by Riot Games, posted a net loss of ₩28.482 billion in FY2024, after losses of ₩13.2 billion in FY2023 and ₩8.1 billion in FY2022, with sales down more than 55% year over year. The National Assembly Budget Office lists the provision at item 109 with no cost attached to it in any year. The Budget Office's conclusion criticizes precisely this pattern, noting that some items are presented as unestimable year after year despite continuous operation. The ministry's summary table sorts the two credits differently, with the team credit appearing under the pursuit of selective and efficient support, and the tournament credit appearing under consolidation with similar budget programs. The plan does not name the program it would be consolidated into, and the question-and-answer briefing issued to reporters alongside it does not mention esports at all. The timetable is short, with the statutory legislative notice period on the eleven accompanying tax bills running from Aug. 4 to Aug. 20, and submission to the regular session of the National Assembly due before Sept. 3. The ministry reviewed all 241 tax expenditure provisions and adjusted 115 of them, ending 20 outright, redesigning 64 and making 14 permanent. The two esports items sit in a fourth group of 17 being converted from tax relief into direct budget spending. The ministry's plan gives the same reason for both terminations: tax expenditure efficiency. The Korea e-Sports Association (KeSPA) found that game publishers put ₩70.3 billion into esports in 2022 against ₩19.9 billion in related revenue, or 28% of what they spent. The Korea Mobile Game Association, the Korea AI Game Association and the Korea Game Developers Association are among the five industry bodies that issued a joint statement asking the ministry to withdraw the termination of the tournament credit. The Korea Association of Game Industry also signed the statement. The statement asks for a game production cost credit that South Korea does not have. The window to act on either closes when the bill leaves the ministry. The ministry can amend its own plan until the bill is submitted to the National Assembly. The source of the information is the Esports Advocate, which reviewed the 2026 tax reform plan and KeSPA's research. The plan was released Aug. 3 by the Ministry of Finance and Economy. The Esports Advocate is the source of the information about the tax credits and the industry's reaction. The information about the economic effects of the credits comes from KeSPA's report, which was reviewed by the Esports Advocate. The report found that the credits were structurally incapable of paying out. The information about the value of the credits is determined by geography, as eligibility stops at the capital region. The credit does cover the events South Korea has been landing, such as the Mid-Season Invitational at the Daejeon Convention Center from June 28 to July 12. The credit does not apply to LoL Park in Seoul, where the LCK plays most of its schedule, or to the KSPO Dome in the city's Songpa district, where the 2026 LCK final is set for Sept. 13. The city government expected the Road to MSI qualifier in Wonju to draw about 15,000 visitors. The LCK Co., wholly owned by Riot Games, posted a net loss of ₩28.482 billion in FY2024, after losses of ₩13.2 billion in FY2023 and ₩8.1 billion in FY2022, with sales down more than 55% year over year. The National Assembly Budget Office lists the provision at item 109 with no cost attached to it in any year. The Budget Office's conclusion criticizes precisely this pattern, noting that some items are presented as unestimable year after year despite continuous operation. The ministry's summary table sorts the two credits differently, with the team credit appearing under the pursuit of selective and efficient support, and the tournament credit appearing under consolidation with similar budget programs. The plan does not name the program it would be consolidated into, and the question-and-answer briefing issued to reporters alongside it does not mention esports at all. The timetable is short, with the statutory legislative notice period on the eleven accompanying tax bills running from Aug. 4 to Aug. 20, and submission to the regular session of the National Assembly due before Sept. 3. The ministry reviewed all 241 tax expenditure provisions and adjusted 115 of them, ending 20 outright, redesigning 64 and making 14 permanent. The two esports items sit in a fourth group of 17 being converted from tax relief into direct budget spending. The ministry's plan gives the same reason for both terminations: tax expenditure efficiency. The Korea e-Sports Association (KeSPA) found that game publishers put ₩70.3 billion into esports in 2022 against ₩19.9 billion in related revenue, or 28% of what they spent. The Korea Mobile Game Association, the Korea AI Game Association and the Korea Game Developers Association are among the five industry bodies that issued a joint statement asking the ministry to withdraw the termination of the tournament credit. The Korea Association of Game Industry also signed the statement. The statement asks for a game production cost credit that South Korea does not have. The window to act on either closes when the bill leaves the ministry. The ministry can amend its own plan until the bill is submitted to the National Assembly. The source of the information is the Esports Advocate, which reviewed the 2026 tax reform plan and KeSPA's research. The plan was released Aug. 3 by the Ministry of Finance and Economy. The Esports Advocate is the source of the information about the tax credits and the industry's reaction. The information about the economic effects of the credits comes from KeSPA's report, which was reviewed by the Esports Advocate. The report found that the credits were structurally incapable of paying out. The information about the value of the credits is determined by geography, as eligibility stops at the capital region. The credit does cover the events South Korea has been landing, such as the Mid-Season Invitational at the Daejeon Convention Center from June 28 to July 12. The credit does not apply to LoL Park in Seoul, where the LCK plays most of its schedule, or to the KSPO Dome in the city's Songpa district, where the 2026 LCK final is set for Sept. 13. The city government expected the Road to MSI qualifier in Wonju to draw about 15,000 visitors. The LCK Co., wholly owned by Riot Games, posted a net loss of ₩28.482 billion in FY2024, after losses of ₩13.2 billion in FY2023 and ₩8.1 billion in FY2022, with sales down more than 55% year over year. The National Assembly Budget Office lists the provision at item 109 with no cost attached to it in any year. The Budget Office's conclusion criticizes precisely this pattern, noting that some items are presented as unestimable year after year despite continuous operation. The ministry's summary table sorts the two credits differently, with the team credit appearing under the pursuit of selective and efficient support, and the tournament credit appearing under consolidation with similar budget programs. The plan does not name the program it would be consolidated into, and the question-and-answer briefing issued to reporters alongside it does not mention esports at all. The timetable is short, with the statutory legislative notice period on the eleven accompanying tax bills running from Aug. 4 to Aug. 20, and submission to the regular session of the National Assembly due before Sept. 3. The ministry reviewed all 241 tax expenditure provisions and adjusted 115 of them, ending 20 outright, redesigning 64 and making 14 permanent. The two esports items sit in a fourth group of 17 being converted from tax relief into direct budget spending. The ministry's plan gives the same reason for both terminations: tax expenditure efficiency. The Korea e-Sports Association (KeSPA) found that game publishers put ₩70.3 billion into esports in 2022 against ₩19.9 billion in related revenue, or 28% of what they spent. The Korea Mobile Game Association, the Korea AI Game Association and the Korea Game Developers Association are among the five industry bodies that issued a joint statement asking the ministry to withdraw the termination of the tournament credit. The Korea Association of Game Industry also signed the statement. The statement asks for a game production cost credit that South Korea does not have. The window to act on either closes when the bill leaves the ministry. The ministry can amend its own plan until the bill is submitted to the National Assembly. The source of the information is the Esports Advocate, which reviewed the 2026 tax reform plan and KeSPA's