- The Act bans providing unrated games and exchanging game results for cash (Art. 32(1)(1) and (7)).
- Both are punishable under Article 44(1) by up to 5 years' imprisonment or a KRW 50 million fine, and the games and proceeds are confiscated.
- Operating without a permit or registration may be punished separately under Article 45 (up to 2 years or KRW 20 million).
Applicable laws and penalties
Game Industry Promotion Act Art. 44(1)Game Industry Promotion Act Art. 44(2)Game Industry Promotion Act Art. 45In detail
What is cash exchange?
Turning points, prizes or game money won into cash. The Act bans doing this as a business, brokering it, and buying results back. A counter clerk handing out cash at an adult PC room is a typical example.
Unrated games
Most reel, slot and hold'em software used in adult PC rooms is unrated or was refused a rating as a gambling game. Installing and providing it to customers is itself a violation.
Confiscation
Article 44(2) requires confiscation of the game content, criminal proceeds and property derived from them, or collection of their value. In practice the confiscation amount is often a bigger burden than the prison term.
Relation to other laws
If the business is seen as opening a gambling place for profit, Article 247 of the Criminal Act often applies as well. If sports betting is mixed in, the National Sports Promotion Act is also considered.
Frequently asked questions
Can I avoid punishment if I did not know the games were unrated?
Owners and distributors bring in and run the games, so this claim is rarely accepted. Staff may be able to dispute it depending on how they were hired. Which argument works depends on your role and evidence, so set the direction with a lawyer before questioning.
We only gave prizes, not cash.
If prizes encouraged gambling or were bought back, it can still be a violation. How the business actually ran can narrow the charges, so bring your records to a consultation.
The same role can lead to different charges and outcomes depending on the facts. For your specific case, speak with a lawyer.