Lawmakers in South Korea’s Democratic Party are once again pressing for tighter regulation of in-game monetization, reintroducing a bill aimed at banning a controversial mechanic commonly found in online titles.
Lawmakers in South Korea’s Democratic Party are once again pressing for tighter regulation of in-game monetization, reintroducing a bill aimed at banning a controversial mechanic commonly found in online titles.
The proposal, put forward by Representative Kim Byung-kee, seeks to amend the Game Industry Promotion Act by outlawing so-called “complete gacha” systems — mechanics that require players to collect an entire randomized set of items before unlocking a rare reward.
Key Provisions of the Bill
At its core, the bill would prohibit complete gacha mechanics, which critics argue encourage repeated spending and mimic gambling-like risks.
The draft also targets undisclosed changes to item drop rates, often referred to as “rate manipulation.” Under the amendment, the Ministry of Culture, Sports, and Tourism would be granted authority to investigate whether published drop rates are accurate, and to take enforcement action if manipulation is uncovered.
Developers would also be required to publish clearer consumer protection policies, covering refunds and conversions not only for real-money purchases but also for transactions made with in-game currency. Another provision introduces a compensation framework for players in cases where live-service games shut down, ensuring consumer rights are protected.
Kim emphasized that current law fails to hold developers accountable for deceptive practices, creating a regulatory gap that fosters gambling-like behaviors. The proposed reforms, he said, are designed to promote a healthier gaming environment and safeguard consumers.
Not the First Attempt
For the uninitiated, gacha refers to mechanics where players spend real or virtual currency to obtain randomized rewards, often likened to capsule toy vending machines.
This is not the first time Korean legislators have tried to curb the practice. Previous attempts failed after the Culture, Sports, and Tourism Committee argued that there was insufficient evidence to justify an outright ban. At the time, the ministry itself advised a cautious approach, recommending transparency over strict prohibition.
The new bill, however, combines stronger oversight with explicit consumer protection measures, signaling a shift in legislative strategy.
Gacha Under Renewed Scrutiny
The renewed push comes amid intensifying controversy around loot boxes and gacha systems in one of the world’s largest gaming markets. In March 2024, South Korea passed a law requiring publishers to disclose loot box probabilities, with violations punishable by fines of up to 20 million won or two years in prison.
Enforcement has already been active. By mid-2024, the Game Rating and Administration Committee had identified 266 violations, many involving overseas developers. Major publisher Nexon Korea was fined 11.6 billion won (approx. €8.5 million) by the Fair Trade Commission for manipulating odds in MapleStory — the largest penalty of its kind under Korean law.
Other big names, including Com2uS and Krafton, have also faced investigations over alleged rate misrepresentation. The controversies have fueled public debate over fairness and transparency in game design, strengthening calls for more robust legal safeguards.
