South Korea Proposes Revenue-Based Fines for Loot Box Violations

South Korean lawmakers have introduced a bill that would significantly raise penalties for gaming companies that fail to properly disclose loot box probabilities, tying fines directly to company revenue. The proposal was submitted to the National Assembly on Sept. 23, 2025, and would amend the Act on Promotion of the Game Industry.

The amendment, proposed by Kim Seong-hoe of the Democratic Party of Korea, would allow regulators to impose fines of up to 3% of a game operator’s sales, capped at ₩1B (~$692,300 USD). The move targets developers who omit or falsely display probability information for random in-game items.

Under the current law, game operators must disclose the types of random items and their supply probabilities. Companies that fail to comply, even after corrective orders from the Ministry of Culture, Sports, and Tourism, can face up to two years in prison or fines of up to ₩20M (~$13,800). 

Lawmakers backing the amendment argue the current penalties are insignificant relative to the revenue generated from South Korean loot box violations, allowing companies to offset fines while retaining economic gains.

Why South Korea is Moving to Revenue-Based Loot Box Fines

According to Gamemeca (machine-translated), the bill is intended to enable faster recovery of economic gains obtained through violations, rather than relying on criminal penalties that are rarely applied.

WNHub, citing Gamemeca data, reported that lawmakers believe modest fixed fines allow companies to absorb penalties while continuing questionable practices.

Kim said the issue extends beyond disclosure compliance, describing misleading random item practices as conduct that undermines market order by weakening user trust. 

He added that tougher enforcement would encourage companies to compete on game quality and gameplay, rather than short-term profit tactics. This, in turn, would support sustainable growth across the Korean game industry.

The amendment is co-sponsored by nine additional lawmakers, underscoring growing political support for tougher enforcement. If passed, the measure would further reinforce South Korea’s strict approach to loot box regulation, increasing compliance pressure on game publishers operating in the market.