South Korea Identifies 266 Games Violating Loot Box Probability Disclosure Rules
Since the implementation of stringent amendments to the South Korean Game Industry Promotion Act on March 22, 2023, a significant number of games have been found to be non-compliant with the new loot box probability disclosure regulations.
The Game Rating and Administration Committee (GRAC) monitored a total of 1,255 games.
Out of these, 266 games were found to be in violation of the rules. Notably, 60% of the offending titles were developed by foreign companies.
Developers of 185 of these games have already corrected their violations. The remaining developers face substantial penalties if they do not comply with the government's directives.
Penalties
Fines and Imprisonment: Non-compliant developers could be fined up to ₩20 million ($14.4k) or face imprisonment for up to two years.
Potential Bans: Five foreign games risk being banned from distribution in South Korea if their developers do not adhere to the correction requirements.
The amendments to the Game Industry Promotion Act mandate that all game companies, both domestic and foreign, must disclose the probabilities of obtaining rewards from loot boxes directly on the in-game purchase screen. This move aims to increase transparency and protect consumers from deceptive practices.
Earlier this year, South Korea’s Fair Trade Commission investigated potential violations by notable companies such as Krafton (PUBG) and Com2uS (Summoners War).
In March, Nexon was fined ₩11.6 billion ($8.3 million) for misleading customers by altering drop rates in MapleStory. This action was taken before the new amendments came into effect.
The enforcement of these regulations underscores South Korea's commitment to ensuring fair play and transparency within the gaming industry. As the country continues to monitor and regulate game companies, it is expected that compliance will improve, fostering a more trustworthy environment for gamers.
