I. INTRODUCTION
On October 22, 2024, the Ministry of Culture, Sports and Tourism (the “MCST”) amended the Game Industry Promotion Act (the “GIPA”) to newly impose an obligation on certain foreign gaming companies of certain scale to designate a domestic (Korean) agent (the “Domestic Agent Designation System”) (Article 31-2 of the GIPA).
As a follow-up measure, on October 21, 2025, the MCST amended the Enforcement Decree of the GIPA to specify the detailed criteria for designation and other matters delegated by the amended GIPA. The Game Rating and Administration Committee (the “Committee”) subsequently provided guidance to the companies subject to compliance by email in mid and late October 2025.
The Domestic Agent Designation System under the amended GIPA took effect on October 23, 2025. The main points of the system and the relevant guidance are summarized below.
II. SUBJECTS TO WHICH THE DOMESTIC AGENT DESIGNATION SYSTEM APPLIES
1. Persons Engaged in the Game Distribution or Provision Business Without an Address or Place of Business in Korea
The obligation applies to persons engaged in the business of distributing or providing games without an address or place of business in Korea. Whether a person distributes, supplies, or provides game products in Korea is determined by comprehensively considering various factors, including whether a Korean version of the game exists, whether domestic payment methods are available, and whether a domestic branch has been established to perform game-related functions. For example, if a person has secured a significant number of Korean users and conducts business activities such as placing game-related advertisements while offering game services in Korean, that person may be subject to the Domestic Agent Designation System, even if the servers are located overseas and the person has no Korean entity or registration related to game products in Korea. However, a person who enters into a brokerage agreement with a game-related business and distributes game products or provides game usage services through an information and communications network is exempt from the Domestic Agent Designation System.
2. Persons Meeting Any of the Following Criteria
A. Revenue Threshold
A person whose revenue for the preceding year (or the previous fiscal year, in the case of an entity) was at least KRW 1 trillion.
This refers to the total worldwide revenue of the business operator, not limited to revenue generated in Korea or from gaming activities. The total revenue must be converted into Korean won using the average exchange rate of the previous year.
B. Mobile Game Downloads
A person that distributes or provides a mobile game product that was newly installed on users’ mobile communication devices sold domestically an average of at least 1,000 times per day in the previous year.
This applies to domestic downloads regardless of the users’ nationality. If the same game is distributed through multiple app markets, download counts from all markets are aggregated. The calculation is based on the total number of domestic downloads between January 1 and December 31 of the previous year, divided by 365 days, resulting in an average daily download count of at least 1,000. Even if multiple game products are distributed, if at least one game meets this threshold, the person is subject to the Domestic Agent Designation System.
Average daily number of domestic users (mobile games) = Total number of domestic downloads in the previous year ÷ 365 days
C. Determination by the MCST
A person deemed by the MCST to require the designation of a domestic agent due to any actual or potential incident or accident causing significant harm to game users.
Whether such harm has occurred or is likely to occur is assessed comprehensively based on factors such as media reports, comments from the National Assembly, and user complaints. For example, if a game experiences a rapid surge in users over a short period or a sudden increase in user complaints, the Minister of Culture, Sports and Tourism may require the relevant person to designate a domestic agent regardless of revenue or user numbers.
III. ROLES AND QUALIFICATIONS OF THE DOMESTIC AGENT
The domestic agent’s responsibilities include:
(i) post-management reporting on the orderly distribution of game products, prevention of speculative activities, and prohibition of speculative elements in games, pursuant to Article 31(2) of the GIPA; and
(ii) representation in matters related to labeling obligations, such as the disclosure of probability-type item information, pursuant to Article 33 of the GIPA.
The domestic agent must be a natural person or legal entity with an address or place of business in Korea. If a natural person is designated, Korean nationality is not required, but the person must be able to communicate effectively in Korean.
A business operator may designate multiple domestic agents, and one domestic agent may represent multiple overseas business operators. If a game distributor or provider has a domestic entity established by itself, or a domestic entity that exercises controlling influence over its executive composition or business operations, it is advisable to designate such entity as the domestic agent.
IV. PROCEDURES FOR DESIGNATING A DOMESTIC AGENT
The domestic agent must be designated in writing. The following information must be included in the terms and conditions: the name (or, for an entity, its name and the name of its representative), address (or business location, in the case of an entity), telephone number, and email address of the domestic agent. If multiple domestic agents are designated, information for all agents must be disclosed.
The telephone number disclosed must be a domestic contact number through which the agent can be reached regarding the performance of its duties.
Although the GIPA does not require a formal report on the designation, the MCST recommends notifying the Committee and submitting a certificate of designation along with a copy of the relevant terms and conditions.
V. SANCTIONS FOR VIOLATIONS
If a person subject to the Domestic Agent Designation System fails to designate a domestic agent, the Committee may impose an administrative fine of up to KRW 20 million.
An administrative fine may be imposed for each instance of non-compliance, and the obligation to designate a domestic agent arises annually based on revenue or user numbers. Therefore, repeated non-compliance may result in recurring fines.
If a domestic agent violates any of the obligations set forth in Article 31-2(1) of the GIPA, the foreign gaming company will be deemed to have violated the relevant provisions.
Ⅵ. IMPLICATIONS
The purpose of the Domestic Agent Designation System is to strengthen oversight and supervision of foreign gaming companies that may disrupt the domestic game distribution order. The MCST has stated that it will make efforts to ensure that foreign gaming companies subject to this obligation comply with the amended GIPA and that the system operates effectively.
Accordingly, foreign gaming companies should take appropriate steps to ensure compliance with the amended GIPA.
Recently, the Committee has sent notices to gaming companies regarding those subject to the domestic agent designation requirement. Companies that have not yet designated a domestic agent as required may face administrative fines. Therefore, it is important to continuously monitor regulatory developments and ensure timely compliance.
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Bae, Kim & Lee LLC has provided extensive advisory and litigation services in the gaming sector and possesses requisite expertise in this field. In addition to providing general advisory services in relation to the newly imposed obligation to designate a domestic agent for foreign game-related business operators in accordance with the amended GIPA, based on our in-depth experience and know-how accumulated over years of serving as domestic representatives under the Personal Information Protection Act and the Act on Promotion of Information and Communications Network Utilization and Information Protection, our firm is well-equipped to directly serve as your designated domestic agent. Please contact us if you have any questions.
[Korean version]
