Regulation on Probability-Based Items Passes First Gate in National Assembly

The amendment to the Game Industry Act, which focuses on the disclosure of probability-type item information, passed the National Assembly's bill subcommittee on the 30th.

[Asia Economy Reporter Lee Seung-jin] The amendment to the Game Industry Act, which focuses on the disclosure of probability-type item information, has passed the bill review.

On the 30th, the Subcommittee on Culture and Arts Legislation of the National Assembly's Culture, Sports and Tourism Committee merged and reviewed five proposed amendments to the Game Industry Act submitted by Democratic Party lawmakers Lee Sang-heon, Yoo Jeong-ju, Yoo Dong-su, Jeon Yong-gi, and People Power Party lawmaker Ha Tae-kyung, and passed them.

The amendment to the Game Industry Act, which failed to pass once due to opposition from Democratic Party lawmaker Kim Yoon-duk at the bill subcommittee meeting held on December 20 last year, has now cleared the subcommittee hurdle. The establishment of the meaning of probability-type items and the obligation to disclose probabilities were passed as is. The Culture, Sports and Tourism Committee will hold a plenary session on the 31st to discuss the legalization of probability-type items once again.

The revised acceptance plan was supplemented by the Ministry of Culture, Sports and Tourism to address concerns raised by lawmaker Kim Yoon-duk. First, the 'provider' was added as a subject responsible for probability disclosure. Previously, the subjects were limited to production and distribution. However, it is still unclear what exactly 'provider' refers to. There is an interpretation that it refers to app market operators such as Google and Apple or advertising agencies. This is to ensure that the probability-type items are displayed regardless of how they are exposed.

In case of violation of the display obligation, a buffer system is stipulated allowing the Minister of Culture, Sports and Tourism to recommend corrections and issue correction orders before criminal penalties. If the correction order is not complied with, imprisonment of up to 2 years or a fine of up to 20 million won may be imposed.

The Ministry of Culture, Sports and Tourism expressed a 'cautious' opinion on the ban of 'Complete Gacha' (multiple draws) proposed by lawmaker Yoo Dong-su and the establishment of a user committee proposed by lawmaker Ha Tae-kyung. The cautious opinion is effectively considered as 'opposition.'

Although the legalization of probability-type items has passed the major hurdle, it is uncertain whether the subsequent procedures will proceed smoothly. There are claims that strengthening related regulations could cause reverse discrimination against overseas game companies, as domestic game companies are already voluntarily disclosing item probabilities.

The Korea Game Policy Self-Regulation Organization also issued a statement opposing the amendment to the Game Industry Act for the same reason. Their position is that legalization will be ineffective as self-regulation is already in place.