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Korean politicians are taking another swing at the gaming industry’s most controversial money-making schemes, armed with determination and a clearer understanding of what went wrong last time.
The Democratic Party of Korea has reintroduced legislation targeting gacha mechanics in online games, specifically aiming to ban “complete gacha” systems and force developers to reveal how they manipulate drop rates behind the scenes.
Floor leader Kim Byung-kee hopes this second attempt will succeed where previous efforts failed.
Complete gacha in the crosshairs
The most predatory system faces elimination.
The proposed amendment to the Game Industry Promotion Act specifically targets complete gacha mechanics, where players must collect entire sets of random items to unlock rare rewards. This system creates a psychological trap where players feel compelled to keep spending until they achieve completion.
Kim Byung-kee argues that existing laws lack teeth when dealing with developers who manipulate probability rates or deploy exploitative monetisation systems. His bill would give the Ministry of Culture, Sports and Tourism powers to investigate when disclosed drop rates don’t match reality.
The legislation also demands game companies clearly outline consumer protection policies, including refund terms and exchange options for digital content purchased with in-game currency.
Learning from past failure
Previous bill died in committee.
A similar proposal during the 21st National Assembly never made it to a vote. The Culture, Sports and Tourism Committee questioned the justification for an outright ban, calling for more empirical research before taking action.
The Ministry of Culture, Sports and Tourism took an even more cautious stance, suggesting transparency requirements might work better than legal restrictions. They worried about stifling innovation in Korea’s crucial gaming industry.
Kim’s new approach appears more targeted, focusing on the most exploitative practices rather than broader monetisation systems. This tactical shift may address previous concerns about regulatory overreach.
Ministry gains investigation powers
Oversight extends beyond disclosure requirements.
The amendment would authorise the Ministry to investigate cases where item probability data appears inaccurate. This represents a significant expansion of regulatory oversight into game development practices.
Currently, developers can disclose drop rates but face little scrutiny over whether published percentages reflect actual algorithm behaviour. Players have long suspected some companies adjust rates without updating public information.
The bill includes a compensation framework for players affected by live service game closures, addressing another consumer protection gap in current legislation.
Industry resistance expected
Gaming companies oppose additional restrictions.
Korean game developers have historically resisted monetisation regulations, arguing they stifle creativity and competitiveness. The country’s gaming industry generates substantial export revenue and employs hundreds of thousands of people.
Complete gacha systems, whilst controversial, prove highly profitable for mobile game operators. Banning these mechanics could force companies to redesign revenue models or potentially relocate operations to more permissive jurisdictions.
Some developers may argue that gacha mechanics differ fundamentally from traditional gambling because digital items lack real-world value. However, secondary markets for game accounts and virtual items complicate this distinction.
Consumer protection focus
Bill emphasises player rights over industry concerns.
Kim positions the legislation as consumer protection rather than anti-gambling regulation. This framing may help navigate political opposition from industry lobbyists and economic development advocates.
The amendment requires clear disclosure of refund policies and exchange terms, addressing player complaints about misleading advertising and unfair monetisation practices. Many players have discovered they cannot recover money spent on digital items even when games shut down unexpectedly.
The compensation framework for live service closures would be particularly significant, as several high-profile Korean games have ended operations recently, leaving players with worthless digital purchases.
Regional regulatory trend
Korea follows global movement against predatory gaming.
Several countries have begun scrutinising gacha mechanics and similar monetisation systems. Belgium and Netherlands have classified some loot box systems as gambling, whilst China requires probability disclosure for randomised rewards.
Japan introduced industry guidelines limiting complete gacha systems after public outcry, though these remain voluntary rather than legally binding. Korea’s approach represents a more direct regulatory intervention.
The legislation reflects growing recognition that digital gambling-like mechanics can cause addiction and financial harm, particularly among young players who may not understand probability mathematics or spending risks.
Political momentum builds
Second attempt may succeed where first failed.
Kim’s decision to reintroduce the bill suggests political momentum remains strong despite previous setbacks. The Democratic Party may believe public sentiment has shifted further against exploitative gaming practices.
Social media campaigns highlighting predatory monetisation have gained traction among Korean gamers, whilst parents’ groups increasingly voice concerns about children’s spending on mobile games.
The bill’s more targeted approach may also appeal to moderate legislators who supported consumer protection but worried about industry impact during previous debates.
If passed, the legislation would make Korea one of the first countries to ban specific gacha mechanics rather than simply requiring disclosure or industry self-regulation.
Source: Gambling Insider
