(1) Reasons for Proposal

The Amendment prescribes grounds to entrust the Korea Creative Content Agency to conduct fact-finding surveys on the game industry. It clarifies partition facility standards to be observed by business entities providing Internet computer game facilities, modifies standards for offering free gifts, and otherwise addresses and improves upon a number of weaknesses that have emerged from the operation of the current system.

(2) Major Provisions

A. Prescribe grounds to outsource fact-finding surveys on the game industry (Article 7-2, paragraph 3 newly inserted)

1) Fact-finding surveys on the game industry are currently conducted by the Korea Creative Content Agency, but the Decree does not prescribe such grounds.

2) Accordingly, ensure procedural validity and the consistency of surveys by prescribing grounds to entrust the Korea Creative Content Agency to conduct fact-finding surveys on the game industry.

B. Increase the standards for offering free gifts (Article 16-2, subparagraph 2; Article 2, paragraph 1, subparagraph 1)

1) The current standards for providing free gifts specifies a limit of 5,000 won, but this low-price limit encourages mass production of counterfeit goods in the market. Thus, the standards for providing free gifts shall specify a limit of 10,000 won to account for such factors as the date of the introduction of the current standards (May 2007), the promotion of the use of authentic goods, and invigoration of the character industry. However, maintain the current standards for providing free gifts for game products that are potentially speculative and subject to technological deliberation.

2) The current Ministry of Culture, Sports and Tourism Notice titled “Notice on the Number of Game Product Installations at Non-Game Providing Business Establishments (Single Location)” limits the installations to “game products permitted for use by all that do not offer free gifts,” but crane games (“skill cranes”) are permitted under the single location scheme since they are regarded as game products that do not offer free gifts.

- Amend the Enforcement Decree and the Notice at the same time to manage crane games as game products offering free gifts

- Exclude any game product permitted for use by all at a juvenile game providing business subject to technological deliberation to account for the likelihood of speculation

C. Clarify facility standards concerning matters for compliance by business entities providing internet computer game facilities (attached Table 2, subparagraph 5, item B)

1) Current provisions allow business entities providing internet computer game facilities that use head mounted displays to install transparent glass windows or other partitions to prevent safety accidents involving users. In reality, however, business entities have been requested to install only glass windows during the registration process at local governments.

2) Accordingly, clearly specify that partitions consisting of windows made of materials offering an internal view, etc. may be installed