- Providing unrated games or exchanging game results for cash is punishable by up to 5 years' imprisonment or a KRW 50 million fine under Article 44 of the Game Industry Promotion Act.
- If the business is seen as opening a gambling place for profit, Article 247 of the Criminal Act may also apply.
- A nominee owner who only lent their name is also booked as an accomplice. That someone else actually ran the business only helps if it is backed by objective evidence.
Applicable laws and penalties
Game Industry Promotion Act Art. 44(1)Game Industry Promotion Act Art. 45Criminal Act Art. 247Game Industry Promotion Act Art. 44(2)Key issues
Real operator or nominee?
Investigators look at the business registration, lease, the account receiving sales, and who hired and paid staff. A claim of 'I only lent my name' is rarely accepted on testimony alone.
Length and scale of business
Operating period, number of PCs, sales and cash-outs drive both the sentence and the confiscation amount. If investigators' estimates differ from reality, the basis must be challenged.
Involvement in cash exchange
Providing unrated games and exchanging results for cash are separate violations. Who handled the exchange and whether the owner ordered or knew of it are key.
Scope of confiscation
Criminal proceeds are confiscated, or their value collected. How profits were split among accomplices and what each actually received are often disputed.
What to do, step by step
- On the day of the raidWhat you say on site is recorded. Do not guess about the business structure; you may say you will speak after consulting a lawyer.
- Before questioningGather ledgers, bank records, the lease and staff records to fix the facts first.
- Suspect interviewDecide in advance what you will say and request that your lawyer attend. You may read the record before signing and ask for corrections.
- After referral to prosecutorsReview how proceeds were calculated and prepare mitigation and confiscation materials.
Frequently asked questions
Can a nominee owner be punished?
Yes. A person who only lent their name is usually booked as an accomplice. But if contracts, deposits and messages show someone else actually ran it, your involvement may be judged lower. This evidence only works if prepared before the first interview, so talk to a lawyer first.
Will a first offense end with a fine?
Even first offenders have received prison sentences depending on the operating period, sales and cash exchange. The outcome depends heavily on what statements and evidence are left at the investigation stage. We help set your statement strategy and attend police questioning with you.
I already closed the shop. Can I still be investigated?
Yes. As long as the statute of limitations has not run, past operations can be investigated. Contact often comes late through accomplices' statements or items seized elsewhere. Check the scope of the case with a lawyer before responding alone.
The same role can lead to different charges and outcomes depending on the facts. For your specific case, speak with a lawyer.