The gaming industry is paying attention as a bill to completely ban "complete gacha (completion-type draws)," which combines probability-based items to obtain new items, has been introduced. The bill was also introduced in the 21st National Assembly but was scrapped when the term ended. However, since the Lee Jae-myung administration put forward "a ban on complete gacha" as a presidential campaign pledge, analysts say it is highly likely to pass this time. In the industry, concerns about revenue declines and hampered innovation coexist with expectations that it could foster a healthy gaming culture.
According to political circles on the 9th, Kim Byung-ki, floor leader of the Democratic Party of Korea, on the 1st led the introduction of a revision to the Game Industry Promotion Act that would fundamentally ban complete gacha. The amendment specifies the seller's obligation to provide accurate information on paid game content and provides grounds for purchasers to receive a full refund if a refund or recall of paid game content is necessary due to the seller's fault. It also includes a provision granting the Minister of the Ministry of Culture, Sports and Tourism the authority to have relevant public officials conduct necessary investigations if there are reasonable grounds to suspect that the disclosed composition ratios of probability-based items differ from actual figures.
Complete gacha is a portmanteau of "complete" and "gacha," and is a game revenue model (BM) that completes by collecting probability-based items to obtain new items or content. For example, you must collect all three items A, B, and C to obtain a high-grade item. On the surface, it looks like a structure where items are collected to complete a set, but the problem is that each item's appearance probability is set differently. As a result, it is structured so that users find it difficult to predict the final expenditure needed to obtain the desired product. Furthermore, because all expense becomes sunk cost if a user gives up midway, critics have consistently argued that it fuels speculative behavior and induces overspending.
Overseas, complete gacha is under strict regulation. In Japan, which first used the term "complete gacha," the Consumer Affairs Agency issued guidelines in 2012 defining complete gacha as a speculative element and banned it starting in 2016. The Japan Online Game Association (JOGA) also prepared guidelines banning all forms that grant rewards when paid draw results are completed in specific combinations. China has mandated a "ceiling" (a guaranteed acquisition cap system) and requires labeling of the number of attempts until guaranteed acquisition. This effectively removes the fundamental problem of complete gacha.
Industry watchers say the amendment is likely to pass the National Assembly. Previously, the Game Industry Promotion Act, which included a clause banning complete gacha, was introduced in the 21st National Assembly, but it passed without the ban. The gaming industry and associations raised concerns about contraction of the industry, and the Ministry of Culture, Sports and Tourism also opposed it, viewing it as a game company's business item. However, with the Lee Jae-myung administration having pledged "a ban on complete gacha" during the presidential race and the ruling party leadership stepping in directly, the legislative drive is seen as strengthened.
The gaming industry is therefore taking notice. Four years ago, the industry pushed back, warning that banning complete gacha would reduce companies' BMs, hurting revenue and stifling innovation. Although complete gacha is gradually declining, it remains a core BM in some games, such as the "Lineage-like" genre. Cases of adopting BMs with structures similar to complete gacha, such as collection- and synthesis-type draws, have remained common until recently.
However, unlike in the past, the industry's mood has shifted. After a bill mandating disclosure of probability-based item information took effect in March last year, multiple cases were reported in which some game companies provided probability information that differed from reality. As the credibility of the self-regulation the industry had touted collapsed, calls to legally regulate probability-based items have become more dominant. Market trends are also changing. Games criticized for excessive monetization have increasingly been shunned by users, and new releases are being improved to avoid excessive pay elements.
A gaming industry official said, "Opinions for and against regulating probability-based items, including complete gacha, were evenly split between industry growth and user rights," but added, "However, with institutionalization already underway overseas and a domestic mood taking hold to avoid probability-based items, a different conclusion than in the past is highly likely."
In addition, the prevailing view is that even if revenue takes a hit in the short term, it will foster a healthy gaming culture over the long term. In fact, among domestic users, the share who enjoy Korean games decreases among younger generations. Due to excessive monetization structures, users have flocked to overseas Steam, console games, and mobile games. There are also expectations that domestic game companies will create new types of content to develop alternative revenue models to replace complete gacha.
Lee Cheol-woo, president of the Korea Game Users Association, said, "I hope the introduction of the complete gacha ban bill will be the first step not in simple regulation, but in creating a healthy gaming environment that both users and the industry can trust," adding, "The association will also continue to pay close attention until the plenary passage and actively cooperate to develop user protection policies."