'Mandatory Disclosure of Probability-Based Items: Up to Triple Compensation for Violations Starting August'

The Ministry of Culture, Sports and Tourism announced on the 21st that the partial amendment bill of the 'Game Industry Promotion Act,' which introduces special litigation provisions regarding violations of the obligation to display probability-type items, was approved at the Cabinet meeting on the same day. This bill passed the National Assembly plenary session on December 31 of last year.

The amended law will be promulgated on the 31st and will take effect on August 1, six months after the date of promulgation. This amendment was prepared as a follow-up measure to the 'Mandatory Display System for Probability-type Items' introduced in March 2024. It has been difficult to prove damages caused by violations of the obligation to display probability-type items by game service providers, and due to the collective and dispersed nature of the damages, it has been challenging to provide effective remedies, necessitating the establishment of practical damage relief measures.

Accordingly, the law was amended to introduce special litigation provisions for violations of the obligation to display probability-type items and to establish the legal basis for operating a dedicated Game Damage Relief Center.

Specifically, ▲ the burden of proof for damages is shifted to the game service provider. In cases of damage related to probability-type items, liability for damages due to intent or negligence is recognized, and the game service provider must prove the absence of intent or negligence to be exempted. ▲ The burden on the claimant to prove the amount of damages is eased. When it is difficult to prove the amount of damages, the court will comprehensively review all circumstances recognized based on the overall intent of the pleadings and the results of evidence investigation to make a decision. ▲ A punitive damages system is introduced. The court may set the compensation amount up to three times the damages if the game service provider intentionally violates the obligation to display probability information. ▲ Lastly, the Minister of Culture, Sports and Tourism will operate a center dedicated to reporting and remedying damages suffered by game users.

A policy official from the Ministry of Culture, Sports and Tourism stated, "This amendment is expected to strengthen the protection of game users' rights, restore trust in game companies among game users, and contribute to the healthy development of the game industry." He added, "We will also prepare to ensure the smooth operation of the dedicated Game Damage Relief Center under the Game Management Committee."

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