Overcoming the Sports Sector's 'Financial Hurdle' by Expanding Sports Toto Offerings

This Year's Sports Budget: 1.6 Trillion Won

Sports Toto Fund Last Year: 1.8 Trillion Won

Handball Remains a Less Popular Sport Despite SK Sponsorship

Federation Pushes for Sports Toto Inclusion

"Inclusion Will Help Expand the F

The argument for expanding the number of sports included in Sports Toto to increase funding for the National Sports Promotion Fund is gaining traction. Concerns have been raised that if the National Sports Promotion Fund-which supports domestic sports on a scale even larger than the government’s general budget-cannot be stably increased, the foundation of unpopular sports and amateur athletics could be at risk.

According to the Ministry of Culture, Sports and Tourism as of February 27, out of the ministry’s total budget of 7.8555 trillion won for this year, the sports sector accounts for 1.6987 trillion won (21.6%). In contrast, the National Sports Promotion Fund, which was raised last year by the Korea Sports Promotion Foundation through the issuance of Sports Toto, amounted to 1.8028 trillion won. This means that, within the sports sector, the fund is larger than the government’s general budget allocation.

The National Sports Promotion Fund is generated through Sports Toto as well as bicycle and motorboat racing, with Sports Toto accounting for about 90%. Last year, Sports Toto sales reached 6.0827 trillion won, and about 33% of the revenue-after deducting payouts (the total prize money) and operating expenses-was allocated to the fund. These resources are used to promote professional sports, foster youth and amateur athletes, support non-included sports, and assist retired and injured athletes.

Nevertheless, the domestic sports field still struggles with financial difficulties. Amateur sports organizations under the Korean Sport & Olympic Committee generate only 20-30% of their budgets through their own revenue, while the remainder relies on donations and public support. While some sports receive corporate sponsorship, these are exceptions rather than the norm.

Expanding the number of sports included in Sports Toto is being discussed as an alternative to overcoming these structural limitations. The logic is that increasing the number of eligible sports will broaden the revenue base, thus naturally increasing the size of the National Sports Promotion Fund. Given that the government strictly regulates the total issuance to address concerns over gambling, some argue that including new sports could provide a policy rationale for expanding the total issuance.

The Korea Handball Association under the Korean Sport & Olympic Committee and the Korea Handball Federation, which operates the H League, held the "Handball Sports Toto Inclusion and Sports Innovation Strategy Forum" with National Assembly Culture, Sports and Tourism Committee lawmakers on February 23 to highlight the need for expanding the list of included sports.

Handball is a rare case in Korea of a sport that has received long-term sponsorship from a major conglomerate. SK Group began its relationship in 2007 by signing a sponsorship deal for the Handball Festival with the Korea Handball Association. The following year, Chairman Chey Tae-won took office as the association president, and even now, a CEO from an SK Group affiliate serves as president. In 2011, SK Group built a dedicated handball stadium through a donation model and established the women’s team SK Sugar Gliders in 2012 and the men’s team SK Hawks in 2016. In 2023, the group led the launch of the integrated professional league, the H League, helping to revitalize the sport. The total support to date has reached about 150 billion won. Nevertheless, handball still faces the structural limitation of being considered an "unpopular sport."

Jae-won Cho, Ok-kyung Lim, and Moon-seok Yang, members of the Democratic Party belonging to the National Assembly Culture, Sports and Tourism Committee (from left to right in the front row), are advocating for the inclusion of handball in Sports Toto at the "Handball Sports Toto Inclusion and Sports Innovation Strategy Forum" held at the National Assembly Members' Office Building on the 24th. Korea Handball Federation

Forum participants emphasized that including handball would go beyond supporting a particular sport and could lead to an overall improvement in the funding structure for the sports sector. They argued that inclusion would raise the sport’s profile, expand the fund, and help establish a virtuous cycle within the sports ecosystem.

Choi Gaon, a 17-year-old snowboarder who won Korea’s first-ever ski gold medal at the recently concluded Milano Cortina Winter Olympics on February 13, mentioned the need to expand air mat facilities, stating, "I want to train in Korea, not in Japan." The fact that the Korea Ski & Snowboard Association still faces infrastructure shortages despite receiving 30 billion won in sponsorship from Lotte Group demonstrates the limitations of relying solely on corporate sponsorship to sustain a sport’s foundation.

Kim Daehee, Professor at the Department of Smart Healthcare at Pukyong National University, said, "There is growing concern that unpopular sports may find it increasingly difficult to survive in the long run as the school-age population declines and the pool of athletes rapidly shrinks. To foster the sports industry and broaden its base, it is essential to establish a stable funding structure and provide institutional support such as Sports Toto, which can continually discover and nurture athlete talent."

This content was produced with the assistance of AI translation services.