Korea Game Policy Self-Regulation Organization "Probability-Based Items Should Be Self-Regulated"

Yoon Seok-yeol, the presidential candidate of the People Power Party, is announcing a pledge to reform unreasonable regulations in the gaming industry and protect user rights at the party headquarters in Yeouido, Seoul, on the 12th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Seungjin Lee] Controversy over the regulation of ‘probability-based items,’ a campaign pledge of President Yoon Seok-yeol, has once again come under scrutiny. As the government and the National Assembly propose various regulatory measures on probability-based items, analyses suggest that voluntary regulation is more effective and better suited for user protection than legal regulation.

According to the National Assembly on the 7th, the Culture, Sports and Tourism Committee’s Subcommittee on Culture and Arts Legislation will collectively review five amendment bills containing regulations on probability-based items. All the amendment bills aim to strengthen regulations on probability-based items, and there is little disagreement between the ruling and opposition parties on these matters.

However, ahead of the review, the Korea Game Policy Self-Regulation Organization (GSOK) officially opposed the strengthening of regulations on probability-based items, reigniting the controversy. On the 5th, GSOK submitted a statement opposing the amendment bill titled ‘Partial Amendment to the Act on the Promotion of the Game Industry’ (hereinafter referred to as the Game Act Amendment), arguing that the current voluntary regulation already demonstrates high efficiency.

The Game Act Amendment, led by Representative Lee Sang-heon of the Democratic Party, defines probability-based items as including cases where paid and free game items are combined, thereby expanding the scope of probability-based items beyond the basic definition. It also requires that probability-based items be disclosed for each game and advertisement or promotional material.

In this regard, GSOK pointed out that the current voluntary regulation lacks professional management in monitoring, making it unsuitable for user protection. They explained that it is ineffective because it cannot cope with the continuously emerging diverse new forms of probability-based items.

GSOK emphasized that the current voluntary regulation is already highly effective. Most domestic game companies are members of the Game Industry Association, which discloses probabilities according to voluntary regulation standards. The policy organization explained that the number of overseas operators converting games in response to monitoring and compliance requests is increasing.

Concerns were also raised about the potential hindrance to the development of the game industry due to strengthened regulations. Probability-based items have become a core business model (BM) for game companies. While large game companies have the capacity to respond to various regulations, strengthened regulations pose a burden on small and medium-sized game companies, raising concerns about the development of the game industry.

Voluntary regulation of probability-based items was first implemented in July 2015. It was introduced by the industry to self-regulate as user complaints grew over excessive inducement to spend. Since then, improvements were made in July 2017 (first improvement), July 2018 (second improvement), and December 2021 (third improvement). The method of disclosing probability information also evolved from disclosing probability information by grade intervals to individual probability disclosure, and from capsule types to enhanced and synthetic types.

However, as of August this year, it was found that 17 out of the top 100 games serviced domestically were not complying with voluntary regulations. Recently, consumer complaints have arisen claiming that the results of purchasing probability-based items in the game ‘Goddess of Victory: NIKKE,’ serviced by Level Infinite, differed from the announced probabilities, spreading controversy over probability manipulation and indicating ongoing issues.

A game industry official said, "Since the government and the National Assembly are pushing for legislation, game companies have no choice but to watch the situation," adding, "However, there are concerns that strengthening regulations on probability-based items could lead to reverse discrimination against domestic game companies, and small and medium-sized game companies may face difficulties entering the market."