"Prize for Doll Claw Machine Raised from 5,000 Won to 10,000 Won"…Encouraging Arcade Game Revitalization

Enforcement Decree and Rules Amendment of the Act on Promotion of Game Industry Effective from the 1st

Photo of a claw machine room. Inside the claw machine made of transparent glass, there are character dolls that are currently trending.

[Asia Economy Reporter Kim Heung-soon] The government will raise the prize payout threshold for arcade games, commonly known as arcade game machines, from the current 5,000 won to 10,000 won. In addition to the existing prize categories limited to stationery, toys, sports goods, and cultural products, household goods will also be added to expand users' choices, thereby easing related regulations.

The Ministry of Culture, Sports and Tourism announced that the revised enforcement decree and enforcement rules of the "Game Industry Promotion Act," which include raising the prize payout threshold to expand the base of the game industry through the development of arcade games, will be promulgated and enforced starting from the 1st.

Relaxation of Prize Regulations
Paid Use of Arcade Test Games

Currently, for all-age-rated games under the youth game provision business, prizes can be provided under certain conditions regarding payout standards, types, and methods. However, these prize-related regulations have been maintained since 2007, and there have been calls to update them to reflect current realities.

The revision raises the prize payout threshold from 5,000 won to 10,000 won, considering the price of prizes such as dolls in claw machine arcades, which are representative prizes, and encourages the use of genuine products. To satisfy diverse consumer demands, household goods have also been added to the prize categories.

The Game Industry Act has a test game system to evaluate performance, safety, and user satisfaction during game development. While computer (PC), online, and mobile games can assess profitability through download and installation numbers, arcade games rely solely on paid testing during product development and import/export as the only profitability criterion.

Accordingly, the Ministry of Culture, Sports and Tourism deleted the free game usage fee regulation to allow paid use of arcade test games and adjusted some related standards such as implementation periods and locations. Additionally, while local governments could previously only entrust game-related business operator education to associations or organizations, the Game Management Committee, which has expertise, has now been added as an authorized education entrustment institution.

Relaxation of Facility Standards for Complex Distribution Game Provision Business
Addition of Online Education

Under the current Game Industry Act, to operate a complex distribution game provision business, the area ratio of internet computer game facility provision business (PC rooms) or youth game provision business must exceed 50% of the total business area. This has led to criticism that there are insufficient game provision establishments that combine games with food, shopping, and other diverse leisure cultures, forming complex cultural spaces. The revision adjusts the area ratio for complex distribution game provision business from the existing 50% to 20% to activate family-friendly complex cultural spaces.

Also, game-related business operator education was only possible through group education methods designated by local governments at specific locations and times, which was burdensome for operators. To operate more efficiently, online education will now be conducted in parallel. There were also criticisms of overlapping regulations as administrative sanctions and fines were imposed together for violations of mandatory education completion; reflecting this, only the fine imposition regulation will be maintained.

A Ministry of Culture, Sports and Tourism official said, "Arcade games have family-friendly characteristics as groups such as families can engage in various activities together in a designated space." He added, "While the game industry has been spotlighted as a non-face-to-face industry in the COVID-19 era, expansion of the base and balanced development are necessary. Arcade games now need to shed their negative image and develop by easing regulations to suit the changed circumstances," explaining the purpose of the revision.

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