[Op-Ed] Cut Regulations and Provide Policy Support to Revitalize the Game Industry

Korea’s Game Industry Slowed by Limitations of the Current System and Excessive Regulation

Institutional Reform, Simplified Administrative Procedures, Support for Research and Development, and Legalization of a Self-Regulation Support System Are Needed

United Kingdom, United States, China—Recognizing the Potential of the Game Industry and Pursuing Active Promotion Policies

If there is one industry that should be most strongly encouraged in a country like ours that is doing everything it can to boost exports, the game industry cannot be left out. Games are an industry that does not require separate facilities for content production, such as raw material storage or factory operation. It is regrettable that the game industry, which is free from the burden of heavy facilities, is unable to fully demonstrate its power because of various regulations.

The current situation is forcing workers in the game industry to expend excessive time and manpower. As a result, those in the industry are voicing difficulties in managing their operations. In particular, due to its nature, the shutdown system is a regulation that requires several months of investment. As a result, the growth of the game industry is being significantly hindered.

Regulations not specified by law also need to be reconsidered. Restrictions such as the monthly payment limit for adult users of online games infringe on users’ right to self-determination. Credit card payment restrictions that card companies apply only to the domestic game industry are also tightening the screws on businesses.

Many countries overseas have recognized the potential of the game industry and are pursuing active promotion policies. The United Kingdom has continued its support for the game industry through its “Creative Britain” policy, and the United States is encouraging the game industry through strategic moves such as hosting a game development festival at the White House. China has also included games among its 11 key industries and is implementing protective policies to foster its domestic game industry.

Korea’s game industry is experiencing a period of stagnation due to various regulations. From 2013 to 2016, its average annual growth rate over the four-year period fell noticeably to 3.85%. More recently, growth has slowed even further. The limitations of the current game-related system and excessive regulation are major causes of this slowdown.

To revitalize the game industry, policy support is needed in areas such as institutional reform, simplification of administrative procedures, and support for research and development. What is urgently needed are the separation of the online game system and the arcade game system, the simplification of excessive administrative procedures, effective tax support for small game companies, and the legalization of a self-regulation support system. If strong and wide-ranging changes are made, the game industry can take off once again.

Korea’s game industry possesses world-class competitiveness, but it is unable to fully realize its potential because of excessive regulation and institutional limitations. To address this, active support and institutional reform must be carried out. With the right support, the Republic of Korea can firmly establish itself as a global powerhouse in the game industry.

Minseong Kwon, Intern Researcher, Center for Free Enterprise (CFE)

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Original title: [칼럼] 게임산업 활성화 위해 규제 줄이고 정책적 지원해야

Author: Min-seong Kwon

Date: 2024-12-04

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=free_opinion&idx=27140