The Ministry of Culture, Sports and Tourism (“MCST”) announced the legislation of partial amendments to the Enforcement Decree of the Game Industry Promotion Act (“Game Promotion Act”). Article 25(2) of the current Enforcement Decree of the Game Promotion Act expressly provides for a re-examination of Attached Table 2, Subparagraph 8, which contains compliance matters for game providers that service games simulating betting or game odds such as card games (e.g. poker or blackjack) or hwatu (or hanafuda, a traditional card game commonly played in Korea and Japan) via the information communications network as defined by Article 2(1)1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, Etc., by February 23, 2016. The proposed amendments reflected the result of the foregoing re-examination and resets the deadline for the sunset provision to February 23, 2018. The main contents of the proposed amendment are as follows:
- Reset deadline for the sunset provision (Article 25(2) of the proposed amendments): The deadline for the sunset provision was extended from February 23, 2016 to February 23, 2018.
- Increase monthly payment limit (Attached Table 2, subparagraph 8, item A of Article 17 of the proposed amendment): The payment limit for game users was increased from KRW 300,000 per month to KRW 500,000 per month.
- Reorganize standard for use fee limit (Attached Table 2, subparagraph 8, items B and C of Article 17 of the proposed amendment): In line with the increase in the payment limit, the use fee per game play was amended from “1/10” to “virtual money and/or game money paid when game items are purchased up to KRW 30,000”, and the per-day loss limit was revised from “1/3” of item A to “1/5” of item A, and other languages in the provision were clarified.
- Addition of another exceptional ground for prohibition of user’s selection of counterparty (Attached Table 2, subparagraph 8, item D of Article 17 of the proposed amendment): In addition to the exceptional ground of “when only using the game money separately provided free of charge”, the situation “when the game money that one game user can use in a single game play does not exceed 1/200 of the game money that may be paid pursuant to the size of the purchase limit set by item A” is included as an additional exceptional ground.
- Extension of personal identification period (Attached Table 2, subparagraph 8, item F of Article 18 of the proposed amendment): The period for personal identification through a public certification authority and/or a third party provider of personal identification service was amended from “every quarter” to “every year”.
- Addition of provision recommending self-policing by game providers (Attached Table 2, subparagraph 8, item G of Article 18 of the proposed amendment was created).
Opinions will be accepted from interested parties in regard to the proposed amendments through the legislation notice from November 16, 2015 to December 28, 2015, and is scheduled to become effective from February 24, 2016.