New Law Requires Foreign Game Companies to Appoint Korean Representatives
- Sagar Mankar
- 1 hour ago
- 2 min read
A major legal change is coming to South Korea’s gaming industry, and it could reshape how global developers do business in the country.
Starting October 23, 2025, foreign game companies that meet certain size criteria must appoint domestic representatives under revisions to the Game Industry Promotion Act, according to the Ministry of Culture, Sports and Tourism.
Who’s Affected?
The law applies to foreign gaming companies that either:
Generate annual sales of 1 trillion won (about $700,000) or more, or
Have over 100,000 monthly Korean users during the last three months of the year.
However, it's not just the biggest players being targeted. Even smaller companies could be required to appoint a local representative if they are flagged as high-risk by South Korean regulators.
What Do These Representatives Do?
According to the Korea Herald, these newly mandated representatives will be legally responsible for ensuring foreign companies follow Korean gaming laws, especially when it comes to gambling-like content — something Korea regulates more strictly than most countries.
Companies that fail to comply could face fines of up to 20 million won (approximately $14,000).
Why So Strict?
South Korea has some of the toughest gambling laws in the world. Gambling for citizens is heavily restricted — mostly limited to government-approved lotteries and the Kangwon Land Casino, the only place locals can legally gamble.
This has long impacted how foreign games are handled in Korea. Games like GTA Online have seen gambling content restricted, and these new requirements are an extension of that vigilance. With the new law in place, domestic representatives will be held accountable if games feature prohibited gambling elements.
Loot Boxes & Transparency Now Mandatory
Another major piece of the regulation: full disclosure of chance-based mechanics. Game developers must now clearly list odds for random item drops, loot boxes, and similar systems.
This echoes global debates over the ethical design of monetization features and mirrors similar steps taken in countries like China, where foreign developers must partner with local firms to operate.
Industry-Wide Implications
Oversight will fall to the Game Rating and Administration Committee under the Ministry of Culture. Their job is to determine which companies fall under the new law and to enforce compliance going forward.
While the regulation is focused on user safety and gambling prevention, it signals a broader crackdown on exploitative monetization.
As the global gaming market becomes more interconnected, developers will need to pay closer attention to regional compliance standards — and South Korea just raised the bar.