On September 26, 2024, the National Assembly passed a bill to partially amend the Game Industry Promotion Act (the “GIPA”) to impose a duty on certain overseas game service providers to designate a domestic agent.

The duty to designate a domestic agent will take effect one year after the promulgation by the President, which could be around October 2025.

Specifically, game distributors and game service providers that do not have an address or place of business in Korea and meet the number of game users and revenue criteria (“major overseas game service providers”) will be required to designate a domestic agent in writing (e.g., by entering into a service agreement). Overseas businesses that provide games online or on mobile platforms, for which they obtained ratings without having an address or place of business in Korea, as well as businesses that operate app markets or game distribution platforms can be subject to the requirement. Major overseas game service providers can designate a third party with an address or place of business in Korea as their domestic agent. However, domestic agents must secure a valid means of contact with the designating major overseas game service providers. On behalf of major overseas game service providers, domestic agents must fulfill reporting obligations (such as submission of materials to regulatory authorities) and comply with disclosure obligations regarding games and lootbox item probabilities, among others. In the case of the domestic agent’s violation or failure to fulfill its obligations under the GIPA, the major overseas game service provider that designated the domestic agent will be deemed to have committed the same violation. Separately, under the amended GIPA, major overseas game service providers also have an obligation to include the domestic agent’s name and address in the terms of use.

If a major overseas game service provider that is required to designate a domestic agent under the amended GIPA fails to designate a domestic agent, it will be subject to an administrative penalty of up to KRW 20 million. The number of game users and revenue criteria, which will serve as the standards for determining major overseas game service providers that are required to designate a domestic agent, will be further detailed in the amendment to the Enforcement Decree of the GIPA to be prepared by the Ministry of Culture, Sports and Tourism.