Administrative

Game Industry Act Lawyer

Game Industry Act Lawyer | Understanding the Investigation and Sanction Process

Summary

The Act on the Promotion of the Game Industry (게임산업진흥에관한법률, the "Game Industry Act") regulates game ratings, probability-type item disclosure, prohibited gambling-like games, and the operation of arcades and game rooms. A violation can lead to a corrective order, business suspension, revocation of registration, or criminal referral, often initiated after an on-site inspection by the Game Rating and Administration Committee or local government. Because sanctions are issued through an administrative process with strict response deadlines, how you respond to the initial notice of intended disposition often determines whether the sanction can be reduced or reversed.

Administrative · Gaming Related law: Game Industry Act Business suspension defense Probability disclosure

Game Industry Act | Common Types of Game Industry Act Violations

Most enforcement actions fall into a handful of recurring categories. Knowing which provision is at issue changes both the likely sanction and the available defenses.

Rating

Distributing or operating an unrated or falsely rated game
Games must receive a content rating from the Game Rating and Administration Committee before distribution, and providing or advertising an unrated game, or one materially different from its rated content, is prohibited (게임산업진흥에관한법률 제32조). This is one of the most common grounds for both administrative sanction and criminal referral against small and mid-size developers.

Probability

Failure to disclose probability-type item information
Since the 2023 amendment, operators must disclose the probability of obtaining paid in-game items to users in a manner the Committee designates, and non-disclosure or false disclosure is a separate violation subject to corrective order and, for repeated or serious cases, criminal liability (게임산업진흥에관한법률 제33조의2). This has become a major enforcement focus since 2024.

Gambling-like

Operating a game that functions as gambling
Games that use random numbers to determine winnings, allow the exchange of game results for money or valuables, or otherwise function like gambling devices are prohibited outright, regardless of rating (게임산업진흥에관한법률 제32조 제1항 제7호). Arcade operators using point-conversion or gift-certificate schemes are frequently targeted here.

Business report

Operating without required business report or registration
Internet cafes, arcades, and certain game providers must file a business report or registration with the relevant local government before operation, and failure to do so, or operating after a registration is revoked, is separately sanctionable (게임산업진흥에관한법률 제25조, 제26조).

Minors

Allowing minors into age-restricted premises or games
Operators of adult-only arcades or games that allow entry or play by minors face sanctions distinct from the rating violations above, and this is a frequent secondary charge added during on-site inspections (게임산업진흥에관한법률 제28조).

One inspection can trigger multiple charges at once

In practice, a single on-site inspection often uncovers more than one issue simultaneously — for example, an unrated game combined with missing probability disclosure. Because each violation carries its own sanction track, it matters which ones are formally cited in the notice of intended disposition, and whether the facts support all of them.

Game Industry Act | How the Rating System Works and Where Disputes Arise

Rating disputes are rarely about whether a rating exists, but about whether the distributed content matches what was rated, and who is responsible when it does not.

Self-rating vs. Committee rating

Most mobile and PC games are self-rated through the self-rating system operated by platform holders under Committee authorization, while certain categories (adult content, arcade games) must go through the Game Rating and Administration Committee directly (게임산업진흥에관한법률 제21조). A common dispute is whether a self-rated title should have gone through the Committee instead.

Content changes after rating

Updates, new modes, or added items that materially change gameplay after the initial rating can require a re-rating, and continuing to distribute the updated version without one is treated the same as distributing an unrated game. Whether a given update counts as "material" is frequently the central factual dispute in these cases.

Who bears responsibility in a publishing structure

When a developer, publisher, and platform are separate entities, the notice of intended disposition may be directed at whichever party the Committee identifies as the actual distributor, and that determination is contestable through the opinion submission process before the sanction becomes final.

Game Industry Act | Probability-Type Item Disclosure Obligations

Probability disclosure enforcement is relatively new and the standards for what counts as adequate disclosure are still being tested case by case.

What must be disclosed and where

Operators must disclose the probability of obtaining each paid probability-type item within the game client, on the game's webpage, and in advertisements, in the format the Committee designates (게임산업진흥에관한법률 제33조의2). Disputes often center on whether disclosure was sufficiently accessible or was buried in a way that arguably fails the standard.

Complete-selection items and probability changes

Special rules apply to items that change probability after a certain number of draws ("pity systems") and to bundled items, and mistakes in disclosing these mechanics are a frequent basis for corrective orders even where a disclosure exists in some form.

Escalation from corrective order to criminal referral

A first violation typically results in a corrective order with a deadline to fix the disclosure, but failure to comply, or a pattern of violations, can lead to referral for criminal investigation. Responding substantively to the corrective order within the given period is usually the last opportunity to avoid that escalation.

Game Industry Act | Administrative Sanctions and How They Are Contested

Sanctions range from a warning to permanent revocation, and each level has its own defense strategy and appeal window.

Sanction ladder: warning to revocation

Depending on severity and repetition, sanctions escalate from a corrective order or warning, to business suspension of a set number of days, to revocation of registration, with the specific ranges set out in the enforcement decree's sanction schedule (게임산업진흥에관한법률 제35조, 같은 법 시행령 별표). Prior violations within a set look-back period increase the severity of the next sanction.

Opinion submission before the sanction is finalized

Before finalizing most sanctions, the administrative agency must notify the operator of the intended disposition and grant an opportunity to submit a written opinion or request a hearing (행정절차법 제21조, 제22조). This is often the single most effective stage to present evidence or argue for a reduced sanction, before the sanction is formally issued.

Challenging a finalized sanction

Once a sanction is issued, it can be challenged through an administrative appeal to the relevant appeals commission or through administrative litigation seeking cancellation of the disposition, generally within 90 days of receiving notice of the disposition (행정소송법 제20조). A request to suspend enforcement of a business suspension order can also be filed alongside the litigation if the suspension would cause irreparable harm before the case is decided.

Game Industry Act | From Notice to Resolution

Initial consultation and document review
We review the on-site inspection report, notice of intended disposition, or criminal referral notice you received, and identify which specific provisions are cited and what evidence supports them.

Responding to the notice of intended disposition
Within the opinion submission period, we prepare a written opinion addressing the factual and legal basis of the proposed sanction, and request a hearing where appropriate to present evidence directly.

Negotiating the scope of the sanction
Where a violation is not seriously contested, we focus on evidence of corrective measures already taken, absence of prior violations, and mitigating circumstances to seek a reduced sanction such as a shorter suspension period.

Administrative appeal or litigation if the sanction proceeds
If the disposition is issued as proposed, we assess whether to file an administrative appeal or administrative litigation for cancellation, and whether an application to suspend enforcement is needed to prevent the business suspension from taking effect immediately.

Coordinating with any parallel criminal proceeding
Where the same facts are also referred for criminal investigation, we coordinate the administrative defense with the criminal defense strategy so that statements made in one proceeding do not undermine the other.

Game Industry Act | How Fees Are Structured

Consultation and case assessment
An initial review of the inspection report or notice of intended disposition to determine likely outcomes and the realistic scope for reducing or reversing the sanction.

Retainer fee
Set according to the stage of the case (opinion submission only, hearing representation, or full administrative appeal/litigation) and the complexity of the underlying facts, such as the number of violations cited and whether a parallel criminal referral exists.

Success fee
Where applicable, discussed separately depending on the concrete outcome sought, such as a reduction in suspension period or cancellation of a revocation, rather than tied to any guaranteed result.

Disbursements
Costs such as expert opinions on technical or probability-mechanic issues, translation of foreign platform materials, and filing fees for administrative appeal or litigation are billed separately as incurred.

※ Costs vary depending on case complexity and specific circumstances; exact fees will be provided during consultation. No specific outcome is guaranteed.

Game Industry Act | Self-Check Before You Respond

1️⃣ If You Received an On-Site Inspection Notice

Have you confirmed exactly which provisions the inspectors cited as potential violations?
Did you preserve the game client version, update logs, and disclosure screens as they existed at the time of inspection?
Have you identified whether the inspection was conducted by the Committee, a local government, or the police?
Is there a deadline attached to any request for materials or explanation that you need to meet?

2️⃣ If You Received a Notice of Intended Disposition

Have you calculated the exact deadline for submitting a written opinion?
Do you understand whether a hearing has been offered, and whether requesting one would help your case?
Have you gathered evidence of any corrective steps already taken since the alleged violation?
Do you know whether this is a first violation or whether prior sanctions exist that could increase severity?

3️⃣ If a Business Suspension Order Has Already Been Issued

Have you confirmed the exact start and end dates of the suspension?
Would the suspension cause harm serious enough to justify an application to suspend enforcement?
Have you calculated the 90-day period for filing administrative litigation from the date you received notice?
Are employees, franchisees, or platform partners affected in ways that need to be addressed separately?

4️⃣ If Probability Disclosure Is the Issue

Can you show exactly what disclosure existed in the client, webpage, and advertisements at the relevant time?
Have you reviewed whether pity-system or bundled-item mechanics were disclosed according to the designated format?
If a corrective order was issued, have you implemented and documented the fix within the given deadline?

Frequently Asked Questions

Q. Can a game be sanctioned even if it already has a rating?

A. Yes. A rating covers the content as submitted, so a subsequent update that materially changes gameplay, or an item mechanic that later develops gambling-like characteristics, can be sanctioned separately even though the original rating remains technically valid (게임산업진흥에관한법률 제32조).

Q. What happens if I ignore the notice of intended disposition?

A. If you do not submit a written opinion within the given period, the agency generally proceeds to finalize the sanction as proposed, since the opinion submission process is your primary opportunity to contest the facts or argue for a lesser sanction before the disposition is issued (행정절차법 제22조).

Q. Can a business suspension order be stopped before it takes effect?

A. You can file an administrative appeal or administrative litigation for cancellation, and separately request suspension of enforcement of the disposition itself, which if granted prevents the suspension from taking effect while the case is being reviewed. Whether such a request is granted depends on the likelihood of harm and the merits of the underlying challenge.

Q. Is failing to disclose probability information always a criminal matter?

A. Not automatically. A first-time disclosure failure typically results in a corrective order rather than criminal referral, but repeated violations, failure to comply with the corrective order, or clearly false disclosure can lead to criminal investigation (게임산업진흥에관한법률 제33조의2).

Q. Who is responsible when a game is developed by one company and published by another?

A. Responsibility generally follows the party the Committee identifies as the actual distributor of the game to users, which is often the publisher rather than the developer, though this allocation can be contested during the opinion submission stage if the facts support a different structure.

Q. Does operating an arcade with a point-conversion or prize system automatically violate the Act?

A. It depends on whether the scheme functions to convert game results into money or valuables, which is prohibited regardless of the arcade's registration status. Point systems that have no cash-equivalent value and cannot be exchanged outside the premises are treated differently from those that effectively pay out winnings (게임산업진흥에관한법률 제32조 제1항 제7호).

Q. How long do I have to challenge a finalized sanction?

A. Administrative litigation seeking cancellation of a disposition must generally be filed within 90 days of receiving notice of the disposition (행정소송법 제20조). An administrative appeal to the relevant appeals commission is also available, often with a similar filing window, and can sometimes be pursued alongside or instead of litigation.

Q. Can prior violations by a previous owner affect a business I recently acquired?

A. This depends on how the business report or registration was transferred and whether the acquisition included the prior operator's registration status. In some structures, a new registration can reset the violation history, while in others the sanction history attaches to the registered business itself.

Q. What is the difference between a corrective order and a business suspension?

A. A corrective order requires the operator to fix a specific problem, such as inadequate disclosure, within a set period, and generally does not stop operations by itself. A business suspension order, by contrast, prohibits all or part of the business operation for a defined number of days and is typically reserved for more serious or repeated violations (게임산업진흥에관한법률 제35조).

Official References

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