The obligation for overseas game companies to appoint a domestic agent was mired in questions about effectiveness from day one of implementation. At a National Assembly audit, lawmakers from both parties pointed to a lack of preparation and poor management of the system.
Kim Seung-soo of the People Power Party criticized at the National Assembly Culture. Sports. and Tourism Committee audit on the 23rd, saying, "Violations of probability-based item information by overseas game companies continue, fueling gamers' distrust." According to data Kim received from the Game Rating and Administration Committee (GRAC), from Mar. 22 last year to Sept. 22 this year, 338 domestic and overseas game companies received requests or orders for correction for 2,181 violations related to labeling probability-based item information.
By nationality, there were 135 from Korea, 142 from China, 30 from Singapore, 15 from Japan, and 9 from the United States, in that order, while violations totaled 1,033 for China, 657 for Korea, and 283 for Singapore, meaning overseas game companies' violations were about 2.5 times domestic cases. The most common violation types were failure to display individual probabilities (252 cases) and failure to display probabilities (796 cases), followed by failure to display in advertising (932 cases).
Kim said, "Even ahead of implementation, questions about effectiveness have continued," adding, "The system needs to be strengthened by gathering opinions from the industry and users." In response, Seo Tae-geon, chair of the Game Rating and Administration Committee (GRAC), said, "If probability information is not displayed or is falsely displayed, blocking measures can be taken within up to three months after a request for correction."
However, Kim noted, "Improvements are needed so that overseas game companies can also be sanctioned quickly," pointing out, "The system must function in practice, such as by imposing disadvantages when the designation of an agent is canceled."
Min Hyung-bae of the Democratic Party of Korea also pointed out, "The domestic agent system was created to stop some overseas game companies' 'eat-and-run' behavior, but the very problem corporations are excluded, and even which corporations will appoint an agent has not been identified." He added, "The Ministry of Culture, Sports and Tourism says about 96 corporations are subject to designation, but the Game Rating and Administration Committee (GRAC) has not even secured that list," and requested the related data.
The Ministry of Culture, Sports and Tourism revised the Game Industry Act in Oct. last year to require overseas game companies with total sales of 1 trillion won or more in the previous year, or with an average of 1,000 or more new domestic installations per day, to designate a domestic agent. After a one-year grace period, the system took effect in earnest starting today.