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

South Korean lawyer Kim Seung-soo introduced an amendment to extend tax incentives to companies that host professional esports tournaments outside the Seoul metropolitan area.

According to local reports, Kim – a member of the People Power Party – proposed a partial review of the Special Tax Prohibition Act on February 20. The amendment aims to extend the sunset clause to existing tax benefits linked to regional sporting events.

Under the current framework, domestic companies that organize professional esports tournaments outside the metropolitan region are eligible for a 10% corporate tax deduction on certain operating expenses. However, the offer is set to expire on December 31, prompting calls from industry stakeholders for an extension.

Kim said the amendment was designed to promote the regional environment by encouraging tournament organizers to host events beyond Seoul.

In a statement explaining the reason for the bill, Kim said: “At a time when countries around the world are competing for leadership in sports, government support is urgently needed to protect Korea’s position as the birthplace of sports and maintain our leadership in the world market.

Kim, who also serves as the Co-Chair of the National Assembly Game Policy Forum, is actively involved in policy discussions related to sports. In May last year, he held a forum on the development of regional esports leagues.

In that conversation, Kim urged Yoo Seung-min, President of the Korean Sports and Olympics Committee, to accept sports as an official category in national sports competitions. It is reported that Yoo responded by expressing his support for the plan.

Kim added: “I will continue to take the lead in expanding the base of sports and strengthening its structural foundation. As the founder of sports, Korea must build an ecosystem suitable for that situation.”

Tax incentives and government-supported programs have become part of national sport strategies around the world. Many countries have introduced financial support programs, infrastructure investments and visa reforms aimed at attracting competition and organizations.

South Korea, long considered one of the primary markets for esports, has faced increasing competition from regions such as the Middle East and Asia-Pacific, where governments and government-backed organizations have mobilized investment in competitive games.

Extending the region’s tax incentives could help diversify South Korea’s esports scene, which remains heavily concentrated in Seoul. Regional tournaments are often seen as a way to develop local player bases, arenas and talent pipelines.

Although the passage of the amendment is not guaranteed, the proposal highlights the continued legislative interest in sports as an economic and cultural industry.