"Did They Only Raise Payment Levels?" Korean Games Criticized at National Assembly Hearing [Buaeri's Game Dictionary]

Minister of Culture, Sports and Tourism Hwang Hee attended the National Assembly's audit on the Ministry of Culture, Sports and Tourism held by the Culture, Sports and Tourism Committee on the 1st, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Buaeri] Domestic major game companies were 'targeted' during the National Assembly's audit. NCSoft, which has faced criticism for inducing excessive spending through loot box-type items, was once again under scrutiny in this audit.

"NCSoft raises only BM level, not game quality"

On the 1st, during the Ministry of Culture, Sports and Tourism's audit by the National Assembly's Culture, Sports and Tourism Committee, Lee Sang-heon, a member of the Democratic Party, criticized domestic game companies' business models (BM) while demonstrating virtual reality (VR) games.

Lee demonstrated the American game company Valve's 'Half-Life: Alyx VR' and played footage of NCSoft's new release 'Lineage W'. In the middle of the audit, NCSoft's game was compared to an overseas game and faced criticism.

Aide of Assemblyman Sangheon Lee demonstrating a VR game. Photo by Assemblyman’s Office

Lee said, "Coincidentally, both companies were established around the same time," and added, "Since their founding, one company has raised the quality of its games significantly, while the domestic company has only raised the level of specific BMs that induce user payments." He further pointed out, "Although domestic sales might have been good, isolation in the global market has deepened."

In response, Minister Hwang Hee of the Ministry of Culture, Sports and Tourism said, "We have reflected the budget to apply immersive technologies in various fields next year."

Regarding this, Lee criticized, "Anyone can see that this inquiry was a criticism of domestic game companies' loot box BMs through a comparison between overseas and domestic games. It is very disappointing that the minister, instead of seeking policies to improve domestic game companies' BM structures, oddly stated support for VR games as the response from the head of the relevant ministry."

Criticism of Loot Box Items Pours Out in the Audit

During the audit, criticism of loot box items, the main source of income for domestic game companies, continued. Loot box items are purchased in a 'drawing' format, where users cannot know which item they will obtain before purchase. They have been criticized for causing excessive spending by users due to the very low probability, comparable to lottery odds. This year, controversies arose with Nexon's MapleStory and NCSoft's Lineage 2M mythical weapons, leading users to stage 'truck protests'.

Professor Wi Jeong-hyun of Chung-Ang University, president of the Korea Game Society and appearing as a witness, said, "The 3N (NCSoft, Nexon, Netmarble) are exploiting intellectual property (IP) based on loot box items," and raised his voice, saying, "They have squeezed wealthy users and devastated the game industry." He criticized the incompetence of the Ministry of Culture, Sports and Tourism and the Game Rating and Administration Committee, stating, "There is no follow-up management, measures, countermeasures, or even analysis reports on loot box items."

In response, Minister Hwang said, "We are relying on voluntary regulation for loot box items, but trust has greatly declined," and explained, "The industry is aware of this, and it is true that clear alternatives must be presented."

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