[🐯Opinion] Better late than never.
South Korea Commissions Study to Improve Gaming Regulations, Potentially Reviewing Blockchain Games, and Boosting Web 3 Gaming Industry
TL;DR
The South Korean government has commissioned a study to improve game industry regulations, indicating a potential review of blockchain games in the country.
Existing regulations under the "Game Industry Promotion Act" restrict blockchain games, aiming to prevent speculative measures, which hampers their launch and distribution in South Korea.
Although delayed, this initiative is considered a positive step in supporting South Korea's blockchain gaming industry, especially since Korean game developers are actively investing in the Web 3 gaming space.
On April 20th, the South Korean government announced that it has commissioned a study on "Improving Game Industry Regulation and Promotion" under the regulatory reform task force led by the Prime Minister's Office. This long-awaited move signals the government's intent to review blockchain gaming, an area of significant interest for the nation's game industry and gamers alike.
South Korea has a regulatory framework known as the "Game Industry Promotion Act" (GIPA), which prohibits promoting gambling in games and restricts the conversion of in-game items to fiat currency. Due to these regulations, blockchain games featuring cryptocurrencies and NFTs have been unable to launch in the country. More specifically, the Games Rating and Administration Committee does not assign ratings to blockchain games, preventing their distribution through domestic app stores, the internet, and console platforms.
The commissioning of this study by the Office for Government Policy Coordination, the highest decision-making body within the Korean government, is the first significant move related to the game industry since President Yoon Seok-yeol took office. President Yoon had promised to promote the gaming industry before his inauguration but has had to focus on addressing the Terra Luna and FTX incidents since taking office.
Although Japan has not suffered significant damage from the Terra Luna and FTX events, the country's government and ruling party are looking to revitalize the nation by focusing on Web 3 technologies. Unfortunately, South Korea has had to tread carefully due to Terra Luna being a Korean project and many Korean citizens holding substantial assets in FTX.
Despite the delay, this new initiative is a positive start. While the research study may not quickly yield concrete results, it provides an opportunity for top government officials to understand the current global trends and identify issues in the gaming sector.
The government's push for regulatory reform is seen as an effort to support the game industry, which has become a major driver of exports and job creation. According to a 2021 content industry survey, gaming accounted for 69.6% of total content exports, solidifying its position as a cornerstone of the country's content export industry.
South Korea is home to major gaming companies such as Wemade, Netmarble, Nexon, and Com2uS, all of which are deeply invested in blockchain gaming. Numerous smaller game developers and ecosystem participants are also seeking to become unicorns in the emerging Web 3 gaming space. South Korea's exceptional movie, drama, music, and gaming content has the potential to lead the world in the Web 3 era.
The future of the South Korean government's support for the game industry is eagerly anticipated.
