South Korea Asks to Remove P2E Blockchain Games Over Legal Issues
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Korean National Economic Daily reported that the South Korean government has recently begun to increase its supervision of blockchain games, and has officially prevented Play to Earn (P2E) from being registered and listed in South Korea.
The Game Rating and Administration Committee (GRAC), which is under the Ministry of Culture, Sports and Tourism of Korea, is responsible for the classification of video games. It recently sent official documents to app stores including Google and Apple, requesting these businesses to conduct self-grading and review according to relevant laws and regulations.
It is reported that the reason why GRAC began to seek assistance from related platforms is that they found that increasingly more game companies have been launching P2E games in Korean market using app stores that have grading system, rather than getting ratings from GRAC first.
GRAC believes that the the number of “speculative P2E games” that “list first, get approval later” is increasing, so it proposes to use the prize restriction clause in the “Game Industry Promotion Act” to stop P2E games from bypassing GRAC (in South Korea, the game prize cannot exceed 10,000 won at a time, about 8.41 USD.)
It is said that some companies including Google have reached a consensus with GRAC in advance.
The conflict between government and game companies is heating up
It’s also pointed out that with the rising passion of P2E games in the global market, Korean game companies have also been trying to catch the business opportunities. P2E mobile games such as “Five stars for Klaytn” and “Infinite Breakthrough Three Kingdoms Reverse” are launched one after another.
The former’s grading was cancelled by GRAC in April, and that of the latter was recently revoked as well. Skypeople, the development company of “Fivestars for Klaytn”, won the lawsuit against GRAC’s administrative penalty suspension in June, which enabled the game to be circulated on the market before the lawsuit’s official disclosure.
GRAC has gradually strengthened its supervision over blockchain games, and even conducted daily review of P2E games (previously it tends to confirm only when relevant declarations or reports are submitted). The agency also issued a decision to cancel the classification of more than 15 blockchain games this year.
Korean game industry has strong opposition to such measures, it’s said that they run counter to the global trend of P2E. A personnel in the game industry stated: “If there is no legal basis for blockchain games, the chaos will continue until the court makes the first relevant litigation decision.”
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