1 free read left. Create a free account for unlimited reading + AI research.
Create free accountReport
K-GAMES – Korea Association of Game Industry
The unauthorized sale of virtual items and misappropriation of trade secrets are key issues. These activities threaten the stability of individual firms and the integrity of the broader market.
The South Korean game industry faces significant economic and reputational risks stemming from internal misconduct, including the unauthorized generation and sale of virtual items, the misappropriation of trade secrets, and the breach of information security protocols. As the sector continues to expand, the prevalence of such illicit activities threatens the stability of individual firms and the integrity of the broader market. Consequently, there is an urgent need for a robust framework that combines heightened professional ethics among employees with rigorous internal control mechanisms and comprehensive security infrastructure.
Legal accountability for these violations is extensive, encompassing both internal disciplinary actions and severe civil and criminal penalties. Acts such as the unauthorized disclosure of proprietary information, the misuse of administrative privileges, and conflicts of interest frequently violate the Copyright Act and the Unfair Competition Prevention and Trade Secret Protection Act. Furthermore, offenses like embezzlement, breach of trust, and computer-related fraud are punishable even in instances where the perpetrator fails to realize direct financial gain. Courts maintain a strict interpretation of trade secret protection, requiring companies to demonstrate clear evidence of access restrictions and security labeling to qualify for legal recourse.
To mitigate these risks, game companies must implement systematic monitoring and regular compliance training to foster a culture of accountability. Employees are expected to adhere strictly to internal security regulations, recognizing that any deviation may result in litigation, including claims for damages and criminal prosecution under the Information and Communications Network Act. By prioritizing internal governance and aligning corporate practices with established legal standards, the industry can better protect its intellectual property and ensure sustainable growth within the competitive global landscape.
The Game Business · 2026