Korean lawmaker proposes bill to extend tax incentives for regional esports tournaments

South Korean lawmaker Kim Seung-soo has introduced an amendment to extend tax incentives for companies hosting professional esports tournaments outside the Seoul metropolitan area.

According to local reports, Kim — a member of the People Power Party — proposed a partial revision to the Restriction of Special Taxation Act on February 20th. The amendment seeks to extend the sunset clause on existing tax benefits tied to regional esports events.

Under the current framework, domestic corporations organising professional esports tournaments outside the capital region are eligible for a 10% corporate tax deduction on certain operational expenses. However, the provision is scheduled to expire on December 31st, prompting calls from industry stakeholders for an extension.

Kim stated that the amendment was designed to stimulate regional esports ecosystems by encouraging tournament organisers to host events beyond Seoul.

In a statement explaining the rationale behind the bill, Kim 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.”

Kim, who also serves as Co-chair of the National Assembly Game Policy Forum, has been actively involved in esports-related policy discussions. In May last year, he hosted a forum addressing the development of regional esports leagues.

During that discussion, Kim urged Yoo Seung-min, President of the Korean Sport & Olympic Committee, to adopt esports as an official category in nationwide sporting competitions. Yoo reportedly responded by expressing support for the initiative.

Kim added: “I will continue to take the lead in expanding the foundation of esports and strengthening its structural base. As the originator of esports, Korea must build an ecosystem befitting that status.”

Tax incentives and government-backed initiatives have increasingly become part of national esports strategies worldwide. Multiple countries have introduced financial support programmes, infrastructure investments and visa reforms aimed at attracting tournaments and organisations.

South Korea, long regarded as one of esports’ foundational markets, has faced growing competition from regions such as the Middle East and the Asia-Pacific, where governments and state-backed entities have ramped up investments into competitive gaming.

Extending regional tax incentives could help decentralise South Korea’s esports landscape, which remains heavily concentrated in Seoul. Regional tournaments are often viewed as a mechanism for developing local playerbases, venues and talent pipelines.

While the amendment’s passage is not guaranteed, the proposal highlights continued legislative interest in esports as both an economic and cultural industry.