A 'Domestic Agent System' that requires overseas game companies without local branches to comply with domestic laws under certain conditions will take effect on the 23rd. The information that domestic agents must disclose includes 'probability information for probability-type items'.

The Ministry of Culture, Sports and Tourism (MCST) announced that the 'Game Industry Promotion Act', which mandates the designation of a domestic agent for overseas game companies, will take effect on October 23. The partial amendment to the enforcement decree of the Act, which establishes the designation requirements, was approved at a cabinet meeting on the 14th.

On October 22, 2024, the MCST amended the Game Industry Promotion Act to impose an obligation on overseas game companies of a certain size or larger to designate an agent in Korea to ensure compliance with the law. This is intended to allow domestic game users to conveniently contact overseas game companies without difficulties such as language barriers, and to strengthen management and supervision in cases where overseas game companies violate domestic game distribution order. The amendment to the enforcement decree, prepared as a follow-up to the amendment of the Game Industry Promotion Act, sets the designation requirements delegated by the law.

Overseas game companies that do not have a place of business such as a branch in Korea must designate an agent if they fall under one of the following three categories: ▲ Global revenue of 1 trillion won or more in the previous year ▲ A person who distributes or provides games with an average of 1,000 or more daily installations on mobile devices in Korea ▲ A person who has been requested to report by the Minister of Culture, Sports and Tourism in accordance with Article 31, Paragraph 2 of the Act, in cases where incidents or accidents that significantly harm game distribution order have occurred or are likely to occur.

Among these, the average of 1,000 or more daily installations is based on a single game, and if the same game is released on multiple markets, the number of downloads for each is aggregated. It refers to cases where the total number of game downloads from January to December of the previous year, regardless of the game release and service termination date, is divided by 365 days and results in 1,000 or more.

Domestic agents must report matters requested by the Minister of Culture, Sports and Tourism or the head of a local government to game-related business operators for the establishment of game distribution order, the use of equipment for gambling, and the prevention of the promotion of gambling in games. In addition, they must disclose information that is mandatory to be disclosed under the Game Industry Promotion Act, such as probability information for probability-type items and age ratings.

The domestic agent must be a natural person or a legal entity with an address and place of business in Korea. It is not required to be a Korean national, but they must be able to communicate fluently in Korean. The address, phone number, and email address of the designated domestic agent must be included in the game's terms of service.

Overseas game companies subject to the designation must appoint a domestic agent in line with the implementation of the system on October 23 and immediately notify the Game Rating and Administration Committee (gracagent@grac.or.kr). Failure to comply may result in a fine of 20 million won.

The MCST is producing and distributing the 'Guide to the Domestic Agent System for Overseas Game Companies' in both Korean and English to help with the smooth implementation of the system and a correct understanding of related laws.

An MCST policy official said, "The overseas game company domestic agent designation system being introduced this time is expected to help overseas game companies better comply with the Game Industry Promotion Act, which regulates domestic game distribution order, and contribute to protecting domestic game users."

He continued, "We will work to ensure that this system operates effectively by pursuing supplementary legislation currently under discussion, such as the right to request data submission for domestic agent designation by the MCST, the addition of conditions for prioritizing the designation of domestic corporations, the obligation of the head office to manage and supervise the domestic agent, and corrective orders and suspension of distribution for failure to fulfill designation obligations."