Key information
The domestic representative designation system for overseas game companies, implemented in October of last year, faces criticism for having significant loopholes. During a National Assembly audit on October 12, Representative Kim Jae-won noted that many foreign firms currently bypass legal obligations due to narrow application criteria.
Current regulations require a domestic representative only if a company generates over 1 trillion KRW in annual revenue or records an average of 1,000 daily installations per individual game. Kim argued that this per-game metric allows companies with multiple smaller titles to avoid oversight despite having a large cumulative user base.
Data indicates that of 277 overseas companies receiving correction requests over the past three years, only 14% were on the mandatory designation list. Kim highlighted that 29 companies repeatedly received correction requests without meeting the current thresholds, suggesting that the scope of the law is too restrictive.
Game Rating and Administration Committee Chairman Seo Tae-geon acknowledged these gaps, noting a lack of legal grounds to penalize repeat offenders. Meanwhile, a recent amendment passed on October 1 aims to strengthen user protection by mandating that companies prioritize designating domestic subsidiaries as representatives and imposing stricter oversight duties.
