Fears over lottery boom

Haengbok Gonggam (Happy Together) Starry Night School offers a shelter for children from low-income facilities, who are left alone at night. Up to 490 teachers take care of children across the nation from after school to 10 p.m. "Culture vouchers" is a system that provides transport and foods as well as entrance fees for cultural performances to the underprivileged, including senior citizens, disabled and single-parent families. Considered “niche welfare programs,” both programs are operated with funds raised through lottery sales. When a 1,000 won (87 cents) lottery ticket is sold, half of the sum is spent to pay the winners and 420 won (36 cents) minus management expenses goes to a lottery fund.

The National Gaming Control Commission under the Prime Minister`s Office has recently recommended to the Korea Lottery Commission under the Strategy and Finance Ministry that the government cut the volume of lotteries issued or temporarily suspend issuance through year`s end. The gaming watchdog issued the recommendation because cumulative lottery sales have exceeded its preset limit of 2.8 trillion won (2.44 billion dollars) for this year. The lottery commission projects this year`s lottery sales to top 3.1 trillion won (2.7 billion dollars). The lottery boom is due to the surging number of people who seek an easy fortune amid the prolonged economic slump and the introduction of the "pension lottery," which is seeing brisk sales and has made a top 10 hit product list along with the instant noodles "kokomyeon" and the Galaxy S 2 smartphone.

The lottery commission is fearful over a cut or suspension of lottery issuance, warning that if the volume is reduced, it could trigger demand to spike further and if it suspends issuance, it could jeopardize the livelihood of small vendors. Others complain that the lottery fund is used to help the underprivileged and question why the lottery is criticized as a gambling industry. The gaming commission projects combined sales in the gaming industry managed by the government, encompassing lotteries, casino and horseracing, will reach 18 trillion won (15.7 billion dollars), more than 1.5 times GDP, this year.

Imperial Japan issued the "sungchal" lottery in colonial Korea in 1945 to mobilize funds to finance military expenses for World War II. One lottery ticket went for 10 won (90 cents), and the winner’s purse was set at 100,000 won (87 dollars). Korea`s first official lottery was the "Olympic Sponsorship Lottery" started in 1947 to raise funds for participation in the 14th Summer Olympics in London. As much as 95 percent of sales from today`s lotteries come from “Lotto.” The primary reason people buy lottery tickets is to win big money instantly. In the next phase, however, buyers make donations through the lottery fund. If people buy funds only to enjoy it as game and are not addicted, lotteries are an attractive means of giving that can simultaneously satisfy both altruism and selfishness.

Editorial Writer Lee Hyeong-sam (hans@donga.com)