By Sagar V. Mankar On September 26, South Korea’s National Assembly approved an amendment to the Game Industry Promotion Act, requiring foreign game companies to appoint a domestic representative. The amendment will take effect in October next year (in 2025), with non-compliance resulting in fines of up to 20 million won.
This new regulation aims to address rising concerns over transparency and consumer protection in the gaming industry. Domestic representatives will ensure that foreign game companies adhere to South Korean laws, such as those governing item probability disclosures, advertising standards, and illegal game distribution. Additionally, these representatives will handle compliance reporting to government authorities, ensuring smooth regulatory operations.
The decision reflects growing scrutiny of major foreign gaming firms, particularly those in the top 100 app market rankings. Complaints from civil society groups have highlighted issues like misleading advertisements, promotions encouraging excessive spending, and refund disputes. These problems intersect with gaming regulations, financial laws, and personal data protection rules, creating a complex regulatory landscape.
Sources: Game Industry Promotion Act, Yoon & Yang official insights.