Nexon Claims "Retroactive Regulation" vs. KFTC Asserts "Consumer Deception"... Verdict on July 22

Key Issues Surrounding 11.6 Billion Won Penalty for Random Item Probabilities
Nexon and KFTC Continue Fierce Arguments in Final Pleadings

Nexon and the Korea Fair Trade Commission (KFTC) engaged in an intense legal battle over a fine of 11.6 billion won related to the probability controversy of in-game items (Cubes). Nexon argued that the fine constitutes retroactive regulation and is therefore unjust, while the KFTC countered that it is an appropriate penalty for acts of consumer deception.

On April 29, during the administrative lawsuit held at the Seoul High Court seeking to overturn the KFTC’s sanction, Nexon stated, “The legality of the act should be judged based on the timing of the conduct, and at that time, it was not subject to regulation,” adding, “We believe the sanction is a retroactive application of the revised Game Industry Act.”

Previously, in January 2024, the KFTC imposed a fine of 11.6 billion won on Nexon for changing the probability of in-game items in a manner unfavorable to users without notification. Nexon filed an administrative lawsuit, claiming the sanction was unjust. Nexon maintains that it is inappropriate to regulate actions that occurred before 2016 with laws that were strengthened after the fact. The “probability-type item disclosure system” was implemented in March 2024.

Nexon further argued that not disclosing the probabilities is closer to an “omission,” yet the KFTC evaluated it on par with a “commission,” and thus it cannot be viewed as an act of consumer deception. Nexon’s legal team stated, “It is inconsistent with legal principles to consider failure to notify users of the change as deception while not taking issue with the original lack of disclosure,” adding, “There is also no evidence that consumers were misled due to not knowing the actual probabilities.”

In response, the KFTC argued that regardless of whether the probability-type item regulation under the Game Industry Act was in effect, failing to notify users of information changes unfavorable to them itself constitutes consumer deception in violation of the Act on Consumer Protection in Electronic Commerce. The KFTC’s attorney cited Nexon’s internal documents indicating the need to conceal the probability change and circumstances relating to customer complaints, stressing, “It is not the case that the company failed to notify users because it was unaware of the item probability adjustment.”

Regarding the statute of limitations, the KFTC pointed out, “As Cubes continued to be sold without notification of the probability changes, the state of user misunderstanding and the deceptive conduct also continued,” adding, “Nexon earned sales of 537 billion won through Cube items.” The KFTC maintained that the imposition of the fine is lawful and rejected Nexon’s argument that subsequent partial compensation to users was sufficient.

Meanwhile, the court is scheduled to deliver its verdict at 2:00 p.m. on July 22.

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