DOMESTIC-AGENCY

Recent amendments to the Game Industry Promotion Act (hereinafter referred as “Game Act”) have strengthened legal obligations for game operators by reinforcing the duty of indications for probabilistic items and expanding liability for user harm. Alongside these changes, the Domestic Agent Designation System was introduced to enhance the protection of Korean users accessing foreign game content.

Given the newly imposed statutory obligations and the possibility of regulatory sanctions, it is essential to work with legal professionals who understand both the institutional framework and practical implementation of the law.

As the official domestic agent partner of the Korea Mobile Game Association (KMGA), Shinwon LLC provides end-to-end support for the designation and execution of domestic agent duties. Our attorneys—who possess deep expertise in the game industry and regulatory compliance—deliver integrated, practical solutions in cooperation with relevant associations and local partners, covering legal issues that arise in areas such as publishing, localization, and customer service.

What Is the Domestic Agent Designation System?
The system requires foreign game-related business operators without a business address or place of business in Korea to designate a domestic agent for the purpose of ensuring local compliance and user protection. This obligation takes effect on October 23, 2025, pursuant to the amended Game Industry Promotion Act.

Who Must Appoint a Domestic Agent?
As stipulated in the draft Enforcement Decree (July 2025), the following foreign game operators are subject to this obligation:

1. A person with sales of KRW 1 trillion or more in the previous year (in the case of a corporation, the previous business year);

2. A person who distributes or provides game products that run on mobile communication devices, which were newly installed an average of 1,000 times or more per day on Korean users’ mobile devices during the preceding year.

3. Any other person recognized by the Minister of Culture, Sports, and Tourism as required to designate a domestic agent in cases where an incident or accident-causing significant damage to game users has occurred or is likely to occur.

Roles of the Domestic Agents
The designated domestic agent shall act on behalf of the foreign game operator to fulfill the following statutory obligations:

1. Fulfillment of the reporting obligations under Article 31(2) of the Game Act, which address maintenance of orderly distribution practices and prevention of speculative elements;

2. Fulfillment of the game product labelling obligations under Article 33 of the Game Act, including displaying of probabilistic item information and other required elements.

Regulatory Outlook and Strategic Considerations
Under comparable legal frameworks such as Korea’s Personal Information Protection Act and the Act on Promotion of Information and Communications Network Utilization, businesses typically respond through one of two approaches:

ⅰ Appointing a law firm or legal office as their domestic agent;

ⅱ Establishing a Korean subsidiary.

While the Game Act currently provides for administrative fines for non-compliance, the introduction of stricter obligations—such as the duty of indications—suggests that stronger regulatory measures, including corrective orders and business suspensions, may be adopted in the future. Appointing a domestic agent is not a mere formality; it is a strategic and legal necessity A meaningful and effective response requires engaging a legal institution that understands the regulatory intent and can operationalize compliance in both legal and practical terms.

Why Shinwon LLC?

▶ Industry-Specific Expertise
We provide highly specialized legal advice across the full spectrum of digital content matters, including game development, publishing, investment, and data protection.

▶ Integrated Local Network
As KMGA’s official legal partner, we work in close collaboration with domestic associations and service providers, enabling seamless support across publishing, localization, and customer support operations.

▶ Joint Representation Model
Under Korean law, a single domestic agent may represent multiple game operators. This structure offers cost efficiency and operational coherence, particularly for publishers managing several titles or affiliates.

▶ Comprehensive Legal Coverage
In addition to our support for domestic agent designation, we offer legal advisory services across all relevant statutes, including the Game Industry Promotion Act, Personal Information Protection Act, Copyright Act, and Patent Act.

· Former Chairman, Game Rating and Administration Committee
· 现 President, Korea Game Policy Research Association

· Passed the 3rd Korean Bar Examination
· Senior Legal Counsel, Korea Copyright Commission (2017-2019)
· Attorney, Game Law Team, SHINWON LLC (2019-Present)

· Passed the 10th Korean Bar Examination
· In-house Counsel, Com2uS Corporation (2015–2017)
· Attorney, Game Law Team, SHINWON LLC (2021–Present)

· Attorney, Bosen Law Firm, China (2012–2015)
· Chinese Attorney, SHINWON LLC (2015–Present)

Contact

General inquiries: lawsw@lawsw.co.kr

KMGA website: http://www.k-mga.or.kr