From October 23, 2025, overseas game businesses that reach Korean users without maintaining a domicile or place of business in Korea may be legally required to designate a Domestic Agent. The regime was introduced through amendments to the Game Industry Promotion Act (often shortened here to the “Game Act”) and its Enforcement Decree. The system gives authorities and users a reliable, locally reachable point of contact and a responsible party to carry out specific post-management reporting and indication (labelling and disclosure) duties that apply to game products offered in Korea.

Statutory Basis (by name and article number)

  • Game Industry Promotion Act: Article 31-2 (Designation of Domestic Agent), Article 31(2) (Reports/Inspections for post-management), Article 33 (Indications / labelling & disclosures), Article 48(1) (Administrative fines).
  • Enforcement Decree of the Game Industry Promotion Act: Article 18-3 (Who must designate an agent), Article 19-2(1) (detailed indication items for probabilistic content and related matters), Article 23 (entrustment to the Game Rating and Administration Committee—GRAC—for compliance checks).

Who Is in Scope

  • Baseline condition: An entity engaged in game distributing or game providing business that does not have a domicile or place of business in Korea but targets Korean users.
  • Targeting indicators (factual): Korean-language service or UI, acceptance of Korean payment methods, enabling Korea as a serviceable region, and marketing or user acquisition focused on Korea.
  • Threshold triggers (Enforcement Decree):
    • Global sales in the previous year at or above a specified Korean won benchmark (commonly cited: KRW 1 trillion; conversion to KRW is based on the prior-year average exchange rate).
    • Average daily installations in Korea of at least 1,000 during the previous year for games that run on mobile communication terminals sold in Korea (aggregate downloads across app markets divided by 365).
    • Incident-based trigger where the Minister requests a report under Article 31(2) due to conduct that significantly undermines distribution order.
  • Marketplace-only exception: If a platform merely provides an open marketplace for third-party transactions (and does not itself distribute content or assume disclosure duties), it is generally out of scope.

What the Domestic Agent Must Do (Statutory Minimum)

  • Serve as the local, reachable representative for the overseas business in Korea, maintaining valid domestic contact channels (address, phone, email) and being capable of communicating in Korean regarding the agent’s statutory role.
  • Carry out post-management reporting functions (Game Act Article 31(2)):
    • Receive and respond to reports, inquiries, or inspection requests from competent authorities that aim to maintain distribution order and protect users.
    • Coordinate submissions and communications on behalf of the overseas principal within required timeframes.
  • Ensure performance of indication (labelling & disclosure) duties (Game Act Article 33 and Decree references):
    • Arrange that legally required indications—such as producer/distributor name, rating, and content descriptors—are made available where the law requires (e.g., product UI, official website, advertising/promotions).
    • For probabilistic items, arrange that the required disclosures (item types, supply probabilities, and any additional matters set by Decree or public notice) are properly presented on the relevant surfaces.
    • For products designated by Decree, arrange for the Operational Information Display Device (OIDD) if applicable, or manage confirmation that a limited-use exception verified by GRAC applies.

Important Clarification: Verification vs. Facilitation

The Act does not expressly mandate the Domestic Agent to conduct a technical audit or certify the factual accuracy of every label, probability table, or disclosure. Instead, Article 31-2 makes the agent responsible for ensuring the performance of the relevant obligations in Korea and for acting as the legally reachable point of contact. In practice, this means the agent:

  • Facilitates, coordinates, and confirms presence and placement of required notices and disclosures on the specified surfaces (game UI, websites, advertising), and ensures authorities and users can contact the business via the agent.
  • Relies on the principal’s data and confirmations for technical accuracy of the content (e.g., numerical probabilities, tables, and item pools) unless the parties contractually assign the agent a deeper verification or pre-publication review role.
  • Acts in the principal’s name for communications with authorities about indications and post-management matters, keeping records of submissions and responses.

Accordingly, baseline statutory responsibility = facilitation and execution of the legal process in Korea (including being reachable and responsive), while technical accuracy remains with the overseas principal unless a contract between the parties expands the agent’s mandate to include substantive verification, QA workflows, or audits.

What the Domestic Agent Is Not (by default)

  • Not a guarantor of factual correctness for every disclosure and probability figure, unless the parties agree otherwise in their contract.
  • Not a content-rating authority (that role rests with the relevant rating bodies and procedures prescribed by law).
  • Not a marketplace operator for third-party titles (operators that only provide market infrastructure without distributing content are generally out of scope).

Terms & Conditions (Korean) — Mandatory Disclosures

  • The overseas business must include the agent’s name (for corporations: corporate name and representative’s name), address (business address for corporations), domestic phone number, and email address in its Korean terms and conditions.
  • The phone number shown must be actually reachable by consumers for matters related to the agent’s role.
  • If multiple agents are designated, the T&Cs should list all of them; details must be updated without delay upon re-designation or change.

Designation Mechanics and Ongoing Governance

  • Appointment in writing identifying the agent, scope aligned to Article 31-2 and related provisions, and authority to communicate with regulators on behalf of the principal.
  • Recommended regulatory notice: Provide the Game Rating and Administration Committee (GRAC) with updated Korean T&Cs and the designation or re-designation certificate in the prescribed form, so there is a clear record.
  • Annual scope check (around October 23): Authorities assess in-scope status annually (e.g., sales, mobile installations, and incident-based triggers). Businesses should review their status each year to confirm whether the designation duty continues to apply.

Liability and Sanctions

  • Administrative fines: Failure to designate a Domestic Agent when required can lead to an administrative fine of up to KRW 20 million (Game Act Article 48(1)). Because scope is reconsidered annually, non-compliance in a year when the duty applies may constitute a fresh violation.
  • Attribution rule: A violation by the Domestic Agent in relation to Article 31-2(1) is deemed a violation by the overseas game business itself (Article 31-2(4)). This makes selection, instruction, and oversight of the agent important from a risk-management perspective.

Practical Scenarios (Illustrative)

  • Global publisher with KRW ≥ 1 trillion prior-year sales: Even without a Korean subsidiary, if it actively targets Korean users, it should designate a Domestic Agent. The agent publishes contact details in Korean T&Cs, coordinates any Article 31(2) reporting, and ensures that required indications (including probabilistic-item disclosures) are present at the mandated touchpoints. The publisher supplies the data, while the agent facilitates legal compliance in Korea.
  • Mobile title surpassing 1,000 average daily installations in Korea: The obligation can be triggered by download volume alone. The developer designates an agent; the agent maintains reachable channels, tracks requests from authorities, and ensures indications appear where required. Unless the contract says otherwise, data accuracy (e.g., probability tables) remains the developer’s responsibility.
  • Incident-triggered case under Article 31(2): If authorities request a report due to suspected disruption of distribution order (e.g., misleading probability advertising), a company without Korean presence must either already have an agent or promptly designate one to handle communications and submissions.

Key Takeaways

  • The Domestic Agent regime creates a local compliance interface for overseas publishers and distributors operating in the Korean market without a local establishment.
  • The agent’s statutory minimum obligations are to be reachable in Korea, to carry out post-management reporting interactions with authorities, and to ensure the required indications are made on the appropriate user-facing surfaces.
  • Verification depth of labels, notices, and probabilities is not imposed by the statute by default; it depends on the contract between the principal and the agent. By default, technical accuracy remains with the principal.
  • Failure to designate when required can lead to fines up to KRW 20 million, and an agent’s breach is deemed a breach by the principal, so contracting, instruction, and oversight should be robust.

Conclusion

Korea’s Domestic Agent system balances practical enforcement with market access for overseas game businesses. It requires a legally empowered, locally reachable representative to manage communications and ensure that mandatory disclosures appear where the law requires. While the agent facilitates compliance processes, the overseas principal remains the source of technical content and data accuracy unless the parties expand the agent’s mandate by contract. By aligning statutory duties with clear contractual roles, businesses can achieve reliable compliance while maintaining operational agility in the Korean market.

Are you looking for a Domestic Agent? Check out our Domestic Agent Service for Overseas Game Companies in Korea.