Latest news with #GameIndustryPromotionAct
Korea Herald
24-04-2025
- Business
- Korea Herald
Foreign gaming companies must appoint local reps in Korea under new law
Game companies with annual sales of at least 1 trillion won, or 100,000 monthly users in Korea, must designate a domestic representative under legal changes taking effect later this year Foreign-based game companies in South Korea will be required, starting later this year, to designate a domestic representative for legal compliance with gambling-related statutes and other rules, if they grow to a certain size in terms of sales or number of users. The change is in line with a revision of the Game Industry Promotion Act, set to take effect on Oct. 23, according to the Ministry of Culture, Sports and Tourism. Companies subject to this measure will be notified individually, the ministry said. The new mandate applies to foreign-based companies that recorded 1 trillion won ($700,000) in total annual sales the previous year, or averaged at least 100,000 Korean users in the final three months of the year. Some companies not meeting those criteria can also be required to designate a domestic proxy if they were previously involved in an incident that caused substantial damage to their users or if they are deemed to pose a substantial risk. Domestic proxies of foreign game companies will have to follow requirements stipulated by the Game Industry Promotion Act, which include restrictions on "speculative gaming content" -- a legal term referring to games that include gambling elements, and government guidelines on disclosing probability information for gaming items that involve chance. South Korea prohibits gambling for its citizens with few exceptions such as the Kangwon Land Casino and government-certified lotteries. As such, it has banned gambling content in several multinational online video games, such as in the global hit Grand Theft Auto Online. Domestic proxies that violate the law will be liable for legal responsibility, and companies that are mandated to designate a domestic representative but do not comply will be fined up to 20 million won ($14,000). The Game Rating and Administration Committee under the Culture Ministry will be entrusted with determining which companies must designate a domestic representative.
Korea Herald
21-04-2025
- Business
- Korea Herald
Game user protection, tax credits for subcontractor support
The Korea Herald republishes a weekly legislative report by local law firm DR & AJU LLC to provide the latest information on bills approved, proposed, pending and set to be promulgated. — Ed. Proposed Bill: Partial Amendment to the Game Industry Promotion Act Proposed by Rep. Kim Byung-kee (Democratic Party of Korea) ● This amendment requires game companies to retain records of probabilistic item acquisition outcomes for at least three years and to disclose them to users in order to enhance transparency regarding probabilistic items. Proposed Bill: Partial Amendment to the Act on Restriction on Special Cases Concerning Taxation Proposed by Rep. Kim So-hee (People Power Party) ● This amendment establishes tax credits for expenses incurred to support subcontractors' industrial accident prevention efforts — 3 percent for large companies, 6 percent for middle-standing enterprises and 12 percent for small and midsized businesses — deductible from corporate or income tax in the year the expense was incurred. Pending Bill: Partial Amendment to the Financial Investment Services and Capital Markets Act Proposed by Rep. Yoon Han-hong (People Power Party) ● This amendment clarifies the directors' duty to protect shareholders' interests by specifying that in the event of a merger, an essential business or asset transfer, an all-inclusive stock swap or transfer, or a split or split and merger, the board of directors must make every effort to protect shareholders' legitimate interests. Promulgated Bill: National Pension Act Competent Authority: Ministry of Health and Welfare ● This amendment — Korea's first pension reform in 18 years since 2007 — raises the contribution rate from 9 percent to 13 percent and increases the nominal income replacement rate from 40 percent to 43 percent. ● This amendment renders both the principal and interest of a loan agreement null and void if the annual interest rate exceeds 100 percent, treating such contracts as socially unacceptable lending practices. —-
