Chinese Game Companies Mock 'Korean Soft Punishments'

[Asia Economy Reporter Bu Aeri] Despite ongoing controversies, it remains difficult to restrict provocative advertisements by Chinese game companies. Under current laws, the penalties that Chinese game companies can face are limited to small fines, leading to criticism that the punishments are too lenient.

On the 19th, Choi Jae-yoon, a lawyer at Taeil Law Firm, stated, "According to the Game Industry Act, the penalty imposed on Chinese game companies is about a 10 million KRW fine, which is not a significant amount," adding, "It is practically difficult to punish overseas operators under domestic law."

The current Game Industry Act prohibits "advertising or distributing promotional materials that differ from the content of the rated game" for games or advertisements provided through information and communication networks. Previously, the advertisement for 'Wangbi-ui Mat' (The Queen's Taste) was subject to a 'correction recommendation' under this regulation.

However, if Chinese game companies violate this, only a 10 million KRW fine is imposed, and there are no provisions for criminal punishment. Only information and communication providers such as YouTube, which posted the advertisement, face criminal penalties if they fail to comply with a 'correction order.'

An industry insider said, "Many Chinese games are distributed by companies without a legal entity in Korea," adding, "In reality, it would be impossible to impose punishments or sanctions."

Moreover, there are no regulations regarding 'provocative advertisements' in the current law. In the case of 'Wangbi-ui Mat,' which received a correction recommendation from the Game Rating and Administration Committee, the regulation applied was that the advertisement differed from the content of the game. Even if the advertisement is provocative, if it relates to the game content, there is no legal basis for punishment.

In response to these issues, a bill to regulate provocative advertisements has been proposed in the National Assembly. However, it has been pending for two years in the Culture, Sports and Tourism Committee, the relevant standing committee.

The partial amendment to the Game Industry Promotion Act, led by Min Kyung-wook of the Liberty Korea Party, aims to require prior confirmation from the Game Rating and Administration Committee regarding the harmfulness of advertisements or promotional materials to youth, and to prohibit the distribution or posting of advertisements or promotional materials confirmed to be harmful.

However, there are concerns that the criterion of 'provocative' is ambiguous, and that legally restricting advertisements in advance could infringe on freedom of expression, raising constitutional issues. A representative from the Korea Game Policy Self-Regulation Organization said, "Advertisements are also a form of content and are connected to freedom of expression," expressing concern that "restrictions should only be applied in very special cases."