"Positive Direction for Game Act Revision... Key Issues: Web Board, P2E Legalization"

Game Policy Association Seminar on the Game Act Revision Bill

Experts: "Support for Promotion, but Supplementary Measures Needed"

Experts have evaluated the complete revision bill of the "Game Industry Promotion Act," sponsored by Assemblyman Cho Seungrae of the Democratic Party of Korea, as having a positive direction. However, they emphasized that further supplementary measures are needed regarding concerns about gambling elements.

The Korea Game Policy Association held a seminar on the major issues of the comprehensive amendment bill for the Game Industry Promotion Act on the 13th at CKL Stage in Jung-gu, Seoul. (From left) Won Kim, attorney at law at Kim & Chang; Sungki Hwang, professor at Hanyang University School of Law; Jeonghun Hwang, attorney at law at Yulchon LLC.

Seongki Hwang, Professor at Hanyang University School of Law and Chair of the Korea Game Policy Association, stated at the "Seminar on Key Issues of Assemblyman Cho Seungrae's Complete Revision Bill of the Game Act" held on March 13 at CKL Stage in Jung-gu, Seoul, "The revision bill is at the level of completely overhauling the current game law system," and added, "The direction of maintaining regulations for arcade games while shifting from regulation to promotion for online games is itself positive."

Since the "Sea Story" incident, gambling regulations were introduced and have also been applied to online games, which has been considered an obstacle to industry development. There have been continuous criticisms that game regulations are stricter compared to those for movies or online video services (OTT).

The core of the revision bill is to establish a dual regulatory system distinguishing between "digital games" and "specific-location games." For digital games, a private self-rating system will be introduced, while for arcade games—where concerns about gambling are higher—the existing system managed by the Game Rating and Administration Committee will remain in place. The bill will also allow online games to offer prizes based on game results, which is currently prohibited under the existing law.

The problem is that if the prize regulation is lifted even for web board games (such as Go-Stop and Poker), it could trigger significant social controversy. Although these games are serviced online, their content is the same as arcade games, making their classification ambiguous. Professor Hwang noted, "This is precisely the point where the Ministry of Culture, Sports and Tourism strongly opposes," and said, "While I agree with deregulation for online games, separate adjustments could be made during the legislative process for this reason."

There are also concerns that the revision bill could lead to the legalization of "play-to-earn" (P2E) games, which are currently illegal. Junghoon Hwang, lawyer at Yulchon LLC, explained, "Because the Game Act prohibits the provision of prizes, P2E has not been permitted, but if the bill passes as is, there will no longer be a regulatory basis, which could cause confusion." He added, "Further legislation to minimize concerns about gambling elements may be enacted. While it is not fundamentally contrary to global standards, I expect the system will be revised to allow such business models in a limited form."

Won Kim, lawyer at Kim & Chang Law Firm, suggested that regulation will apply when illegal activity is found within the overall legal system. Kim stated, "This legislation is intended to eliminate excessive regulations of the past and to recognize games as content that can be enjoyed healthily," and added, "Even if P2E games are fundamentally permitted, gambling or betting activities themselves will not be allowed, and regulation will follow if boundaries are crossed."

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