By Sagar V. Mankar 
South Korea’s Supreme Court recently delivered a landmark verdict siding with gamers in a case against Nexon, a major game developer. The case centered on the manipulation of loot box probabilities in the popular online game MapleStory. This ruling has not only criticized Nexon’s practices but is also expected to influence broader legal and industry standards.
Background of the Controversy
The conflict began in 2021 when a player, Mr. Kim, filed a lawsuit against Nexon over its use of “probabilistic items,” commonly known as loot boxes. These mechanics allow players to pay for randomized in-game items, a practice often criticized for encouraging excessive spending. MapleStory, a 2D MMO that debuted in 2003, has generated significant revenue from loot boxes, earning approximately 550 billion won ($418 million) between 2010 and 2021, according to The Korea Times.
Kim alleged that Nexon manipulated the probabilities of obtaining specific in-game items, leading him to spend 11 million won ($7,879) without receiving the desired results. Initially, a district court ruled in favor of Nexon. However, upon appeal, the appellate court reversed the decision, ordering Nexon to refund 5% of Kim’s spending. The Supreme Court upheld this ruling, condemning Nexon’s “intentional and fraudulent behavior” aimed at exploiting players’ psychological tendencies.
Implications for Ongoing Lawsuits
The Supreme Court’s decision is expected to have a ripple effect on a larger class-action lawsuit filed in February by 717 MapleStory players. These gamers are demanding compensation of 500 million won, claiming Nexon failed to disclose essential information about loot box mechanics. This ruling strengthens the plaintiffs’ position and raises the likelihood of further financial repercussions for Nexon.
In similar cases, Nexon accepted the class action dispute mediation by the Korea Consumer Agency. In September, they agreed to compensate around 800,000 users with approximately 21.9 billion won via in-game currency.
The Core Issue: MapleStory’s Loot Boxes
The controversy primarily revolved around MapleStory’s “Cube” items, which allowed players to enhance their characters’ abilities through randomized stats. In early 2021, players discovered hidden mechanics within the cube system that Nexon had not disclosed. For example, certain stat combinations were either impossible or had much lower probabilities depending on the equipment. Moreover, “weighting factors” ensured that some stats appeared more frequently than others, further undermining transparency.
These revelations outraged players, many of whom had spent substantial amounts of money on cubes under the assumption of equal probabilities. Protests erupted, both online and in-game, with players boycotting purchases and organizing strikes on game servers.
Initially, Nexon dismissed the allegations and avoided addressing the hidden mechanics, which only intensified player frustration. Under mounting pressure, the company admitted to undisclosed probability manipulations and began publishing drop rates for its loot boxes. Nexon also issued an official apology, offering compensation such as free cubes and in-game currency.
Government Intervention and Further Investigations
In 2023, South Korea amended its Game Industry Promotion Act, which came into force on March 22 this year, requiring game developers to disclose the exact probabilities of loot box outcomes. Despite this, Nexon faced further allegations in January 2024, when the Fair Trade Commission (KFTC) fined the company 11.6 billion won ($8.85 million) for allegedly reducing cube probabilities without informing players. This marked the largest fine of its kind.
In July 2024, the KFTC revealed that 266 games, including those from major developers like Nexon, Krafton, and Wemade, had violated loot box transparency laws. These findings underscore the industry-wide challenge of implementing fair practices in loot box mechanics.