[2022 National Audit] Kim Dae-wook, CEO of Naver Z, "Self-rating Classification Operators Will Follow Government Opinions"

On the 5th, Kim Dae-wook, CEO of Naver Z, appeared as a general witness at the National Assembly's Culture, Sports and Tourism Committee audit and is making a statement. (Photo by National Assembly Broadcasting)

[Asia Economy Reporter Seungjin Lee] As opinions diverge on whether to classify the metaverse (3D virtual world) as a game, a suggestion was made during the National Assembly audit that Naver Z, which operates the metaverse service 'Zepeto,' should consider becoming a self-rating classification business operator.

On the 5th, Kim Dae-wook, CEO of Naver Z, appeared as a general witness at the National Assembly Culture, Sports and Tourism Committee (CSTC) audit.

Ryu Ho-jeong, a Justice Party lawmaker who requested Kim’s testimony, inquired about the games distributed within Zepeto. Zepeto is a metaverse platform with a cumulative global user base of 320 million. In July, the Game Rating and Administration Committee (GRAC) informed Zepeto that it must obtain game rating classification, sparking controversy over whether the metaverse should be classified as a game. If the metaverse is classified as a game, Zepeto would be subject to the Game Industry Promotion Act (Game Industry Act).

Lawmaker Ryu pointed out that although some of Zepeto’s services resemble games, they have not received rating classification from GRAC and are instead consulting with the Ministry of Science and ICT, the platform’s supervisory ministry.

In response, CEO Kim said, "It is clear that both contents include game elements, but the purposes for which the contents were created differ. Games are designed with players in mind to generate revenue and are marketed to them, whereas Zepeto’s contents have diverse purposes such as experience, education, and more, rather than focusing on revenue. That is the difference."

Lawmaker Ryu dismissed this as "sophistry." He said, "Revenue purpose has nothing to do with whether something is a game. Even if it is non-profit, a game is a game, and if the purpose is education, it is an educational game." He added, "Zepeto appears to be a convergent content related to social entertainment, but recently, there is hardly anything that is not convergent. I cannot understand why Zepeto should be an exception."

Lawmaker Ryu stated, "I heard that there are 52 contents within Zepeto that include game elements based on submitted materials, which is only about 0.1% of the total. I believe that even if these contents are subject to the Game Industry Act, Zepeto’s growth will not be hindered. The government ministries say they are creating metaverse guidelines, but it seems unnecessary to make such guidelines."

When Ryu asked, "Can you consider becoming a self-rating classification business operator?" Kim Dae-wook, CEO of Naver Z, replied, "We will faithfully follow the government’s opinion."

Lawmaker Ryu said, "The reason I am asking you to consider becoming a self-rating classification business operator is that 70% of Zepeto users are adolescents," adding, "The Game Industry Act is a regulation in some respects but also serves as a safety net to protect users in other respects. As a leading company in the metaverse, you should set an example. A game is a game. Applying different standards invites claims of preferential treatment."