Kim Nam-guk Coin Controversy Mired in Mud... Will the Gaming Industry Face a Wave of Lawsuits?

Wemade Sues Game Society
Game Society Also Considering Legal Action

The controversy over independent lawmaker Kim Nam-guk's cryptocurrency holdings has thrown the gaming industry into turmoil. The Korea Game Society, which was sued by Wemade for alleging lobbying, has also stated that it is considering legal action, creating an atmosphere where the cryptocurrency controversy sparked by Kim is spreading into a lawsuit battle across the entire industry.

[Image source=Yonhap News]

According to industry sources on the 19th, the Korea Game Society is reportedly reviewing legal measures against Wemade, which filed a lawsuit on the 17th for defamation by spreading false information. Wi Jeong-hyun, president of the Korea Game Society, said, "Depending on the situation, we will consider legal action against Wemade."

Wemade announced on the 17th that it had filed a lawsuit against President Wi and the Korea Game Society for defamation by spreading false information. Wemade stated, "We express deep regret over the Korea Game Society's statement and President Wi's media contributions and interviews," adding, "We are also considering filing a civil lawsuit and will hold responsible those who caused enormous damages to Wemade shareholders, the WEMIX community, and investors."

The reason Wemade has entered into a legal battle is due to the 'National Assembly lobbying allegation' raised by the Korea Game Society. On the 10th, the Korea Game Society raised suspicions that certain game companies were lobbying the National Assembly in relation to lawmaker Kim's cryptocurrency controversy. They argued that investigations should be conducted not only on relevant agencies and lawmakers but also on their aides to clarify whether there was lobbying by the gaming industry throughout the National Assembly. Furthermore, President Wi appeared on a radio show and said, "During the 2021 presidential campaign, the entire game and metaverse special advisory group was deeply shocked by Lee Jae-myung, the leader of the Democratic Party of Korea, mentioning the legalization of play-to-earn (P2E) games as a campaign pledge," adding, "We have openly heard stories that P2E companies and related associations and organizations engaged in lobbying."

The Korea Game Industry Association also sided with Wemade. On the same day, the Korea Game Industry Association issued a statement saying, "(The Korea Game Society) should immediately stop spreading unverified content that is merely personal speculation or opinion, which damages the reputation of the game industry," and added, "We will no longer tolerate irresponsible slander and allegations without objective evidence."

Despite criticism from Wemade and the Korea Game Industry Association, the Korea Game Society maintains its stance that lobbying by the industry exists. The day before, the Korea Game Society stated in a press release, "Who was behind the persistent attempts to legalize P2E experienced by President Wi, who was the head of the game and metaverse special advisory group for Lee Jae-myung, and Representative Ha Tae-kyung of the People Power Party, who was the special game committee chairman for candidate Yoon Seok-yeol?" adding, "It is worth considering whether Representative Ha deliberately avoided Wemade." Furthermore, it said, "The actions of the Korea Game Industry Association cause sadness and self-reproach," and added, "Has it become an institution representing the interests of some game companies like P2E companies rather than dedicating and contributing to the gaming community?"

Lobbying allegations in the gaming industry are also emerging in the political sphere. On the 12th, Representative Ha posted on his social media, "During the presidential campaign, I received numerous P2E legalization proposals from unknown sources while reviewing game pledges," adding, "At that time, the P2E policy almost became a final pledge of candidate Yoon Seok-yeol, but I, as the head of the special game committee of the campaign, strongly opposed it, and it was ultimately excluded."

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