The current Game Industry Act requires each person who intends to produce or distribute a game to obtain a content rating for the game from the Game Rating and Administration Committee ("GRAC"), the Game Content Rating Board ("GCRB"), or through self-rating (available to certain game service providers). Korea's game rating system is intended to protect under-aged game users from harmful gaming content, as well as to, prevent the distribution of speculative and illegal games (Article 21 (1) of the Game Industry Act)1.
As evident in the recent criticism against GRAC in relation to its rating practices for the digital game distribution platform STEAM in June of this year, not only game developers but also game users have long complained about Korea's complicated game rating process which is highly time-consuming. In response to such widely shared view within the gaming industry that an overhaul of the current rating system is needed, a bill to partially amend the Game Industry Act was introduced in the National Assembly, which was passed on November 19 in the plenary session. Under the amended Game Industry Act, anyone applying for a game rating is allowed to use a "rating system" created by GRAC and GCRB to rate his/her own game, which will effectively shorten the rating process and enhance the overall efficiency of the rating system. Meanwhile, the games which have been rated via this new process but contain excessively violent, sexual or speculative content will still be subject to review by GRAC or GCRB in the same manner as before to ensure proper review of the game content.
Shortened Rating Process
Currently, to obtain a rating for a game, the relevant person-in-charge at GRAC or GCRB, as the case may be, prepares a review report and holds discussion for rating (this is the so-called "decision-based rating method"), and this process takes more than 9 days on average to complete—and, additional time is needed to rate arcade games, which require a separate technical review process.2
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The administrative process for the current rating system is out of touch with the global trends which are moving toward simplified rating system, and this aspect of the Korean game rating system has come under much criticism as a hindrance to game developers and growth in the gaming industry. For example, the International Age Rating Coalition (IARC) has adopted a rating system under which, once a developer completes a questionnaire, the rating is issued immediately. The Pan European Game Information (PEGI) also allows developers to fill in a questionnaire comprised of a single set of questions about the game content, and this allows for the completion of the rating process in a relatively short period of time.
The amendment is intended to shorten the time required to complete game rating in line with the global trends and, for the sake of convenience of game publishers and users, to allow the applicants for rating to use the questionnaire-driven rating system adopted by the rating authorities, which, in turn, will contribute to a simplified rating process (newly added as Article 21-10 (1) of the Game Industry Act).
Further, to prevent applicants from abusing potential loopholes in the simplified rating system and thereby to make the questionnaire-based rating system more reliable, the amendment also provided for who may apply using the new rating system and how to use the questionnaire-based rating system, as well as the obligations of the applicants. Adults-only games are not eligible for the questionnaire-based rating system (newly enacted proviso to Article 21-10 (1) of the Game Industry Act). If the results of the questionnaire-based rating either do not meet the rating criteria or the game content is otherwise ineligible for rating, then GRAC or GCRB may discuss what the most appropriate rating for the game would be or cancel the results of the questionnaire-based rating (newly enacted Article 21-10 (3) of the Game Industry Act). A detailed process is expected to be prescribed in the Enforcement Rules of the Game Industry Act. Applicants for the questionnaire-based rating system must comply with GRAC's requests for document submission in relation to the rating application and the rating management following the issuance of the rating (newly enacted Article 21-11 (2) of the Game Industry Act). Any failure to comply with the foregoing requirements can result in an administrative fine of up to KRW 10,000,000 (newly enacted Article 48 (1) 2-7 of the Game Industry Act).
The amendment also includes newly enacted provisions on the rating exemption for not-for-profit games and publishers' obligation to comply with the policy on game user rights
The amended Game Industry Act will establish an explicit legal basis to exempt not-for-profit games (containing no adult content) from the rating requirement4 (newly enacted Article 21 (1) 4 of the Game Industry Act). The amendment is intended to reinforce the measures for protecting the rights and interests of game users by requiring game publishers to cooperate in creating a healthy gaming culture and by preventing damage to game users and providing them with a right of remedy, and by prescribing a government policy for protection of game users' rights and interests, such as ensuring the protection of the youth from harmful content (newly enacted Article 14 (2) of the Game Industry Act).
Going Forward
The promulgation of the amended Game Industry Act is expected to take place at the end of this year in the State Council. Thereafter, it will be fine-tuned with the details for the questionnaire-based rating system and other requirements relating to the post-grant maintenance of rating. As legislations generally take effect within one year of promulgation, the amended Game Industry Act is likely to be in full force and effect by the end of the year 2021. Under the amended Game Industry Act, the timing required to review the rating for PC, online, video and console games (excluding those games subject to self-rating, adult-only games and arcade games distributed to youth and general game providers) will be substantially reduced. The specific details of the amendment will be further streamlined through the amendment of the relevant enforcement rules and enforcement decrees. Moreover, as the Ministry of Culture, Sports and Tourism ("MCST") is currently planning to engage in a comprehensive overhaul of the Game Industry Act, a close monitoring of the legislative developments in this area is necessary, and we would recommend our clients in the gaming industry to participate in such legislative process by submitting opinions to the MCST.
BKL has a wide-range of experience in representing clients from the gaming industry in connection with all aspects of their businesses, including advice on regulatory, transactional and contentious matters involving gaming. Some of our work in this area include representing the Korea Association of Game Industry in connection with the enactment of the regulatory notice on loot boxes and advising multinational gaming companies in relation to game rating, licensing and publishing.
Footnotes
1. (Games subject to Rating by Review Body)
- GRAC: Adults only games and arcade games
- GCRB: Games for those aged 15 or under (PC, online, video, console games)
- Independent Rating Classification Business Entity: Self-distributed games, exclusive of adults only games (mostly mobile games)
2. Article 9 of the Enforcement Rules of the Game Industry Promotion Act (Application for Rating, etc.)
③ The GRAC shall determine a rating for a game within 15 days from the application set forth in Paragraph 1; provided, however, that if it cannot determine a rating for unavoidable reasons within the said period, it shall notify the applicant in writing of the reasons and expected date of review.
3. Page 17 of the review report by the Culture, Sports and Tourism Committee on the partial amendment to the Game Industry Act (Proposal No. 2697)
4. The types of not-for-profit games exempted from rating are expected to be prescribed in the Enforcement Decree to the Game Industry Act.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
