[The Editors' Verdict] How Can Domestic Game Users Be Protected from Overseas Game Operators?

In today's global media environment, games can be serviced to users worldwide regardless of the nationality of the developer or distributor. Users often purchase game currency or game items to enjoy the game more fully. However, there is always a possibility that the developer or distributor may terminate the service due to internal or external factors during the provision of the game service. A representative example is the case of the Chinese game Shining Nikki. In the case of Shining Nikki, the service was terminated about a week after its release in October last year due to issues related to costumes.

In such sudden service terminations, there is a risk that refunds for game currency or game items purchased by users may not be handled properly, causing damage. The problem is that domestic institutional measures for user protection are not easily applicable to overseas games. For example, in the case of domestic games, when the service is terminated, the 'Mobile Game Standard Terms and Conditions' require that users be notified in advance and appropriate refund measures be taken. Specifically, if a business providing game services through mobile devices finds it difficult to continue the service due to significant managerial reasons, it may suspend the entire service, but in this case, it must notify users of the suspension date, reasons, and compensation conditions at least 30 days prior to the suspension date. Furthermore, the business must refund unused or remaining paid items according to the Content User Protection Guidelines. However, these institutional measures are not easily applied to overseas games.

The Shining Nikki case raises a fundamental question of how to secure effective measures to protect domestic users when overseas games terminate their services. In fact, to address the representative limitations and problems of government regulation in today’s global media environment?such as the issue of reverse discrimination against domestic operators?a system was legislated to designate a domestic agent for operators without an address or office in Korea who meet certain criteria based on the number of users or sales. However, the scope of overseas operators obligated to designate a domestic agent is narrow, and the operation of domestic agents has been inadequate, revealing that the effectiveness of the system is limited.

It is possible to consider introducing a domestic agent system under the Game Industry Promotion Act. If the domestic agent system is designed more precisely and applied to the game industry, it could better protect game users than before. However, what I want to emphasize is that believing the protection of domestic game users from overseas game operators can be fully resolved solely through government regulation?such as applying the domestic agent system to the game industry?is not only naive but close to ignorance and delusion.

The issue of protecting domestic game users from overseas game operators requires comprehensive cooperation among relevant stakeholders, including intergovernmental cooperation, cooperation between government and market, cooperation among various market players (developers, distributors, platform companies, etc.), and cooperation between regulatory authorities and self-regulatory organizations. It is important to remember that only through such cooperation and a reasonable regulatory system that combines government regulation and self-regulation can this issue be fully resolved.

Seonggi Hwang, Professor, Hanyang University School of Law