Foreign Game Companies to be Mandated to Designate Local Representative
2024.10.21.
On September 26, 2024, the Korean National Assembly passed an amendment to the Game Industry Promotion Act (“GIPA”), which would mandate foreign video game companies operating in Korea to designate a local representative.
As the popularity of video games serviced by foreign companies, especially mobile games, has risen in recent years, there has been increasing complaints regarding compliance of local regulations from both the public and local companies. In particular, although companies servicing video games in Korea are mandated to disclose probability figures for loot box-type items from Mar. 22, 2024 onwards, some foreign video game companies have not complied. However, since many foreign video companies service their products through platforms and do not have a physical presence in Korea, it has been difficult to enforce compliance with regulations.
With the above background, this GIPA amendment seeks to strengthen compliance by mandating foreign video game companies servicing games in Korea to designate a local representative, who will be responsible for reporting and disclosure obligations.
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