[Asia Economy Reporter Bu Aeri] As the government takes action against probability-based items, which have been embroiled in 'gambling controversies,' the gaming industry is expressing reluctance.
According to the gaming industry on the 16th, a new clause mandating the disclosure of probability-based items was introduced in the 'Game Industry Promotion Act Amendment Bill' proposed yesterday by Lee Sang-heon, a member of the Culture, Sports and Tourism Committee from the Democratic Party of Korea. According to Article 59, Paragraph 1 of the amendment, game developers or distributors must display the game's rating, game content information, types of probability-based items, and the supply probability information for each type when distributing or providing the game to users. Violations will be punishable by imprisonment of up to two years or a fine of up to 20 million won.
Probability-based items, which are a major source of revenue for leading domestic game companies, are a type of 'gacha' system. Users cannot know which item they will obtain before purchase. Due to issues such as extremely low odds comparable to lottery winnings, these items have been criticized for causing excessive spending by users. Conscious of this criticism, the gaming industry has voluntarily announced the types and probabilities of probability-based items through the Korea Game Policy Self-Regulation Organization (GSOK). However, there were no penalties or sanctions for violations.
The gaming industry voices concerns about the passage of the bill. A representative from a major game company said, "We worry that what was well maintained through self-regulation might become a business 'hurdle' if it becomes a legislative regulation," adding, "The gaming industry has always been subject to regulations, so there is resistance to the introduction of another regulation." Another industry insider argued, "There is no way to sanction overseas game companies even if they do not comply with the law," and claimed, "Foreign companies often do not follow the probability-based item disclosure, which could lead to issues of reverse discrimination."
However, there are also criticisms that the gaming industry's stance is contradictory. Professor Wi Jeong-hyun of Chung-Ang University, president of the Korea Game Society, stated, "If domestic game companies are truly complying well voluntarily, it makes no difference legally whether the law is enforced or not, so it is puzzling why they oppose it," and added, "If reverse discrimination against overseas game companies is a problem, issues with non-compliance by foreign companies can be addressed through measures such as appointing domestic agents for overseas companies."
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