The intent is to ensure that Korean consumers can communicate with operators more easily and that foreign companies can be held accountable for violations of domestic gaming distribution rules. (Image created by AI/ChatGPT)
SEOUL, April 25 (Korea Bizwire) — South Korea will soon mandate that large foreign gaming companies designate local representatives as part of a broader effort to enhance consumer protection and enforce gaming regulations more effectively, the Ministry of Culture, Sports and Tourism announced on Thursday.
The ministry plans to revise the enforcement decree of the Game Industry Promotion Act to require companies with annual revenue exceeding 1 trillion won (approximately $690 million) or an average of over 100,000 monthly users in South Korea to appoint a domestic agent. A draft of the amendment will be open for public comment until June 4, with the policy set to take effect in October 2025.
The move follows a legislative amendment made in October 2024 that introduced the requirement for qualifying international game companies. The intent is to ensure that Korean consumers can communicate with operators more easily and that foreign companies can be held accountable for violations of domestic gaming distribution rules.
This policy shift gains added significance in the wake of Korea’s 2024 regulatory expansion, which mandated the disclosure of probabilities for in-game randomized items, often referred to as “loot boxes.” Many major overseas firms, which lack a physical presence in Korea, had previously evaded direct enforcement.
Under the new decree, even companies not meeting the specified revenue or user thresholds may still be subject to the domestic representative requirement if the Ministry of Culture deems them responsible for incidents or potential harm to Korean users.
The appointed representatives will be held responsible for upholding legal obligations such as curbing gambling-like features and ensuring clear probability disclosures. Violations could result in penalties, including fines of up to 20 million won ($13,800). However, the regulation exempts companies with a physical office in Korea or those distributing games through local partners.
The Game Rating and Administration Committee will oversee compliance with the new rule.
A ministry official said the revision incorporates input from industry stakeholders and legal reviews of international precedents. “We expect this will improve the integrity of Korea’s game distribution system, enhance user protections, and reduce regulatory disparities faced by domestic developers,” the official stated.
Kevin Lee (kevinlee@koreabizwire.com)
