Game Rating Board Requests Correction from 9 Game Companies for Non-Compliance with 'Probability Item Information Disclosure'

The Game Rating and Administration Committee (GRAC) is understood to have issued its first corrective action request to game companies suspected of failing to comply with the obligation to disclose information on probability-based items.

According to the related industry on the 9th, earlier this month, GRAC sent corrective request letters to nine domestic and international game companies found to have not properly fulfilled the probability disclosure obligation. Most of these companies were confirmed to be overseas operators. GRAC plans to inspect whether the corrective requests are implemented and report the results to the Ministry of Culture, Sports and Tourism.

According to the Game Industry Act, game companies that provide probability-based items must mandatorily disclose the composition ratios and winning probabilities within the game and on their websites, and also inform users of the inclusion of probability-based items in promotional materials. If a violation of this obligation is detected, GRAC issues a first corrective request; if not corrected, the Ministry of Culture, Sports and Tourism issues second and third corrective recommendations and corrective orders. Failure to comply may result in the game company being prosecuted and subject to imprisonment of up to two years or a fine of up to 20 million KRW.

Prior to the mandatory disclosure of probability-based item information, GRAC established the 'Game Information Management Team' under the Autonomous Support Headquarters. This team is responsible for monitoring probability-based items and post-management tasks.

However, there have been concerns that there is no proper way to sanction overseas game companies without branches in Korea if they violate the probability disclosure obligation. GRAC's position is to take blocking measures through consultation with app market platforms for non-compliant games.

Additionally, a bill to amend the Game Industry Act, which would mandate the designation of a domestic agent for overseas game operators, has been proposed to the National Assembly’s Culture, Sports and Tourism Committee. However, with the 21st National Assembly’s term ending next month, the passage of the bill remains uncertain.