SOUTH KOREA Law and Practice Contributed by: Hyun Ho Eun, Jung-Chull Lee and Dukjoong Na, Kim & Chang
(ie, a PC bang, which is a gaming centre in which patrons can play multiplayer games for a fee) and casinos, which are further discussed in 5.1 Premises Licensing . Sports Betting Sports betting, which is regulated by the National Sports Promotion Act, is permitted for a number of sports, including domestic and international football, basketball and golf. Sports betting is only allowed at facilities that are exclusively operated by the Korea Sports Foundation. The GIPA generally applies to all types of games. The Criminal Code and the Speculative Acts Regulation Act also apply to games with speculative elements. 3.2 Definition of Gambling As mentioned in 2.1 Online Gambling , the GIPA and the Speculative Acts Regulation Act regulate the scope of prohibited games (eg, gambling) for being “speculative” in nature. Furthermore, gambling is pun- ishable under the Criminal Code. Although the Criminal Code does not provide a spe- cific definition of “gambling”, the Korean Supreme Court has defined “gambling” as an act of achieving monetary gain or loss through the wager of property on a game or activity based on chance: eg, the Korean Supreme Court held that golf betting games constitute gambling because, even if an individual golfer’s skills affect the winning or losing outcome, there is still an element of chance. 3. Legislative Framework 3.1 Key Legislation The Criminal Code prohibits all forms of gambling and lotteries, and their business operations, with the exception of certain types of permissible betting activ- ities pursuant to separate legal provisions. Therefore, a game with gambling content may be punishable under the Criminal Code as a form of gambling. 3.3 Definition of Land-Based Gambling See 3.2 Definition of Gambling for a general definition of gambling.
In South Korea, casinos and/or internet cafés require certain licences for operation, as specified in 5.1 Premises Licensing . Under the Tourism Promotion Act, in general, licensed casinos are not allowed to permit the entry of South Korean nationals. However, as an exception, Korean nationals are allowed to enter the Gangwon Land, located at Jeongseon-gun, Gang- won-do, South Korea, which is being operated under the Special Act on the Assistance to the Development of Abandoned Mine Areas. 3.4 Definition of Online Gambling South Korean gaming laws do not differentiate between online gambling and land-based gambling. See 3.2 Definition of Gambling for a general defini- tion. 3.5 Key Offences Key offences include unlawful gambling and habitu- al unlawful gambling under the Criminal Code, and unlawful speculative activity under the Speculative Acts Regulation Act. 3.6 Penalties for Unlawful Gambling Unlawful gambling is generally regulated by the Crim- inal Code. According to Article 246 of the Criminal Code, unlawful gambling may be punished by a fine not exceeding KRW10 million, and habitual unlawful gambling is subject to imprisonment for not more than three years or a fine not exceeding KRW20 million. Also, Article 247 provides that any person who estab- lishes a gambling facility for profit (eg, casino) is sub- ject to imprisonment for up to five years or a criminal fine of up to KRW30 million. To be clear, Article 246 applies to the individual gamblers, while Article 247 applies to the gambling facility operator. According to Article 30 of the Speculative Acts Regu- lation Act, the operation of a business with specula- tive activity without obtaining prior permission (ie, a licence) is punishable by imprisonment with labour for not more than three years or by a fine not exceeding KRW20 million.
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