New law requires foreign gaming firms to appoint local reps in South Korea
South Korea is set to introduce a new regulation that mandates foreign gaming companies to appoint domestic representatives for legal compliance, particularly concerning gambling-related content. According to a report by The Korean Herald, the new law will take effect starting 23 October 2025.
This move is part of a broader revision to the Game Industry Promotion Act, which seeks to ensure greater control over the growing influence of international gaming platforms in the East Asia country.
Mandatory representation for large foreign game companies
Under the revised law, foreign-based game companies must designate a local representative in South Korea if they meet specific criteria related to their business scale. Specifically, those with total annual sales of 1 trillion won ($693 million) or companies that average over 100,000 Korean users within the last three months of the year will be required to comply with the new rules.
The new regulation targets some of the largest foreign players in the gaming industry, who must now navigate South Korea’s strict gambling laws and regulations, even though the law applies to companies with no physical presence in the country. Additional conditions may also apply to companies that have previously been involved in incidents affecting their users or those deemed to pose considerable risks, even if they do not meet the standard thresholds.
Gambling content and legal accountability
The new measure is particularly focused on controlling “speculative gaming content,” a term used in South Korea to describe games that incorporate gambling mechanics or elements of chance. Such content has been a contentious issue for local regulators, as South Korea maintains a strict stance against gambling for its citizens, except for a few specific exceptions like the Kangwon Land Casino and certified government lotteries.
The regulation will hold domestic proxies accountable for compliance with laws surrounding gambling content in video games. This includes ensuring that foreign companies disclose essential information regarding probabilities related to in-game items and that their offerings do not encourage gambling behaviours.
Consequences for non-compliance
Failure to comply with these new requirements could result in financial penalties. Companies that do not designate a local representative when required may face fines of up to 20 million won ($13,860). Furthermore, domestic representatives who violate South Korea’s gambling laws will be held legally responsible.
The Game Rating and Administration Committee, which operates under the Ministry of Culture, Sports, and Tourism, will be tasked with determining which companies need to appoint domestic representatives. The committee will closely monitor adherence to the newly introduced regulations, particularly those relating to gambling restrictions.
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