SOUTH KOREA Law and Practice Contributed by: Hyun Ho Eun, Jung-Chull Lee and Dukjoong Na, Kim & Chang
4. Licensing and Regulatory Framework 4.1 Regulatory Authority
under the “insignificant matters” category, as pre- scribed by Decree of the MCST (eg, where it is clear that the content of the game product has no effect on the existing rating decision), such modification can be exempted from the reporting obligation. 4.4 Availability of Licences Although there is no statutory restriction on the num- ber of issued casino business licences, in practice, a casino business licence is granted on a case-by-case and very limited basis. Game manufacturer/publisher registration and value-added telecommunications business report licences are readily available. There is no statutory limit on the number of licences. While there are no restrictions under the applicable laws and regulations, currently, it is practically impos- sible for overseas business operators to obtain game manufacturer and publisher registration licences. In relation to a value-added telecommunications busi- ness report licence, there have been a few cases where foreign service providers have filed the appli- cation for such licence, but cases involving game service providers filing applications for these licences are rarely found. In relation to an online retailer report licence, if the principal place of business is located in South Korea, the application for such licence should be filed with the local government. However, if the principal place of business is located outside South Korea, the application for such licence should be filed with the KFTC. The KFTC made it clear that foreign online retailers are required to file such report as well. Recently, the KFTC has been actively enforcing the online retail business reporting requirement, as there have been increasing consumer complaints about certain foreign e-commerce platforms. 4.5 Duration of Licences There is no set duration of the licences and the rel- evant laws are silent on an expiry date. 4.6 Application Requirements For a casino business licence, many application docu- ments, such as a business plan and documents dem- onstrating compliance with licensing requirements, need to be prepared. Additionally, prior to actual fil- ing for application, consultation with the competent authorities, including the MCST and Jeju Province, will
The Ministry of Culture, Sports and Tourism (MCST), the GRAC, and Jeju Special Self-Governing Province are the key regulatory authorities applicable to the gambling sector. 4.2 Regulatory Approach The South Korean government adopts a prescriptive approach to regulation. Games that are not permitted, such as speculative games, are set out in advance and specific licences and age ratings are required for gaming business operators to provide or distribute games. 4.3 Types of Licences Licences In South Korea, casino business operators are required to obtain a casino business licence from the MCST or Jeju Special Self-Governing Province. For gaming business operators to provide or distrib- ute games through their own channels, the following licences are required: • game manufacturer or publisher registration under the GIPA; and • value-added telecommunications business report under the Telecommunications Business Act (for the online distribution of games). For in-app purchases or any relevant sales regard- ing games, an online retailer report under the E-Com- merce Act is also required. Age Rating Games distributed in South Korea are subject to age rating requirements, and must obtain a rating from the GRAC or a self-rating entity (eg, Google or Apple) before release. However, 19+ games must be rated by the GRAC. For games that obtained a rating from the GRAC, any modification of the content of a rated game product is required be reported to the GRAC in advance or within 24 hours after such modification. Provided, however, that if the content of the modified game product falls
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