Nexon Faces 11.6 Billion Won Fine for 'Probability Manipulation' "Considering Legal Action"

"Insufficient Acceptance of Explanation"
"Review of Objections and Administrative Lawsuits"

Nexon, which was fined over 10 billion won by the Fair Trade Commission (FTC) for manipulating probabilities in 'probability-type items,' has raised objections to the outcome and announced plans for legal action.

On the 3rd, Nexon stated in a press release, "There were points during the FTC's review process where our explanations were not sufficiently accepted," adding, "Once we receive the final decision document, we will carefully examine it and consider filing an objection with the FTC or seeking a judicial ruling."

On the same day, the FTC confirmed allegations that Nexon violated Article 21, Paragraph 1 of the 'Act on Consumer Protection in Electronic Commerce, etc.' (hereinafter the Electronic Commerce Act) during the operation of its flagship games MapleStory and Bubble Fighter, imposing a prohibition order along with a fine of 11.642 billion won.

The core of the controversy was the probability-type item called 'Cube.' In May 2010, Nexon introduced the 'Cube' by leveraging users' desire to quickly enhance character stats within MapleStory, encouraging repeated purchases and thereby increasing sales.

During the Cube sales process, the FTC explained that Nexon unlawfully altered the Cube's probability structure to disadvantage users by reducing or eliminating the chances of obtaining desired potential options. Despite this, Nexon internally instructed employees not to disclose these changes, claiming that such information was something users could "discover through their own adventures," or that "prompt responses should be held until an appropriate time as quick replies only bring forward the timing of customers' re-inquiries."

In response, Nexon pointed out, "The period from 2010 to 2016, which the FTC flagged as problematic, was a time when game probabilities were not disclosed globally," adding, "The FTC judged this matter as a violation despite there being no legal obligation or precedent anywhere in the world at that time."

Furthermore, Nexon emphasized, "MapleStory is a representative K-game enjoyed by approximately 190 million cumulative users across 110 countries worldwide over 20 years," and warned, "The FTC's retroactive punishment will severely shrink Korea's gaming industry, and the damage to Korean game companies in the fiercely competitive global market is unpredictable."

Nexon also highlighted the unfairness of the FTC's decision by citing remarks from Professor Hwang Sung-ki of Hanyang University Law School, who participated as a reference in the FTC's decision-making process. Professor Hwang previously stated, "Although companies voluntarily disclosed probabilities to guarantee consumers' right to know during a period when there was no legal or self-regulatory obligation to disclose probabilities, penalizing them for not disclosing past probabilities violates the 'principle of proportionality or principle of non-excessiveness' required for administrative sanctions."

Professor Hwang further warned, "This decision implies that all probability changes not disclosed during a period without disclosure obligations could be punishable, which may undermine the legal stability of the domestic gaming industry market."

Nexon plans to initiate legal action immediately upon receiving the decision document. Currently, there are two options: first, to file an objection and, if rejected, proceed with an administrative lawsuit; or second, to directly file an administrative lawsuit.

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