[2020 National Audit] "Game Rating Board Practically Neglects Illegal Game Distribution... Doubts on Enforcement Will"

Assemblyman Yoon Sang-hyun "Audit by Board of Audit and Inspection Needed for Illicit Operation of Gambling Games in Review Process"

[Asia Economy Reporter Kim Heung-soon] Illegal game content is being operated through loopholes to generate unfair profits, but the Game Rating and Administration Committee is effectively neglecting this issue, prompting urgent calls for countermeasures.

According to the National Assembly audit materials disclosed on the 22nd by independent lawmaker Yoon Sang-hyun of the Culture, Sports and Tourism Committee, recent games with strong gambling elements have been operating illegal game content in the form of auxiliary games or modifications. Lawmaker Yoon pointed out, "Although the Game Rating and Administration Committee is aware of this, their enforcement is merely formal and lukewarm, effectively leaving illegal game content unattended."

One adult arcade game includes an illegal auto-play device not in the main game but in an auxiliary game program, and it is being operated with the committee's approval. Although the committee later revoked the game's rating decision, the developer filed an administrative lawsuit claiming the cancellation was unjust, winning a provisional injunction, causing ongoing confusion. Meanwhile, thousands of these game machines are distributed and operated in the market.

There was also a case where an existing sports prediction game added League of Legends e-sports games as betting games without notifying the committee. According to the Game Industry Act, this should have been canceled immediately, but the committee confirmed this in April and has neglected it since, according to Lawmaker Yoon.

Meanwhile, the operator realized a profit of about 3 billion KRW, exceeding 100% equity, and disposed of the business. The disposed company was listed on K-OTC, an unlisted stock trading market, raising concerns that not only are illegal profits being neglected but also the general stock investment market is being destabilized.

Lawmaker Yoon emphasized, "The classification review of games involving betting or dividends is too lax and loosely managed compared to their risks and sophistication. Special measures must be prepared, such as separating them from general game content for separate review, and an audit by the Board of Audit and Inspection on the committee's review process is also necessary."