- Compensation applications can be made on Nexon Korea's website starting from September 23 -
- Acceptance of compensation recommendation for all users, with compensation totaling approximately 21.9 billion KRW -
- The first collective dispute mediation in the gaming sector aims to strengthen player protection and restore trust in the gaming industry for sustainable growth -
The Korea Fair Trade Commission (hereinafter “FTC”) and the Korea Consumer Agency (hereinafter “Consumer Agency”) announced the successful mediation of a collective dispute regarding “probability-based paid items” in the game MapleStory. Nexon Korea Corporation (hereinafter “Nexon”) accepted the Consumer Dispute Mediation Committee’s (chaired by Byun Woong-jae, hereinafter “the Committee”) recommendation for a compensation plan for all MapleStory users, with an estimated compensation of approximately 21.9 billion KRW, marking the largest compensation case to date.
On August 13, the Committee decided that Nexon should compensate the applicants with 3.1% of the amount spent on Red Cubes and 6.6% of the amount spent on Black Cubes.
Nexon expressed its acceptance of the mediation decision on September 9, and the Committee recommended that Nexon also submit a compensation plan for users who did not participate in the mediation procedure, which Nexon also accepted. As a result, all users who acquired and used Red and Black Cubes in MapleStory between March 1, 2019, and March 5, 2021, will receive compensation based on the Committee’s decision. Eligible users can apply for compensation on Nexon's website from September 23 until the end of the year.
This collective dispute mediation is the first case since the system’s introduction in 2007 where a compensation plan recommended by the Committee has led to compensation for all consumers affected by the same issue. The compensation amount, approximately 21.9 billion KRW, is the largest in history.
Additionally, this is the first case where the Korea Consumer Agency directly recruited victims and proceeded with collective dispute mediation, in connection with the FTC’s action to penalize Nexon for altering the probabilities of probability-based items to the disadvantage of consumers without proper notification.
When the parties accept the decision, the mediation is finalized, and the outcome holds the same legal effect as a final court ruling (settlement), offering a quicker and more efficient resolution compared to civil litigation.
This mediation is particularly significant because, despite the large number of applicants (approximately 5,800), the mediation plan was proposed within just five months of the application (March 4), and voluntary compensation was arranged for all users—approximately 800,000—ensuring swift and comprehensive relief for related damages, thus proving the effectiveness of the collective dispute mediation system.
The Korea Consumer Agency plans to continue utilizing the collective dispute mediation system in the future to reduce unnecessary social costs and provide opportunities for companies to restore customer trust through voluntary compensation, contributing to a healthy market environment between consumers and businesses.
Despite the continuous growth of Korea’s gaming industry, consumer damage issues such as foreign gaming companies’ reluctance to resolve domestic users’ complaints or disputes and newly launched games abruptly terminating services after selling in-game items have been raised, hindering industry growth.
Recognizing these problems, the FTC participated in a public forum on January 30 to discuss institutional improvements for creating an ecosystem that enhances the rights of game users.
The FTC promptly amended the online and mobile gaming standard terms and conditions on February 27, ensuring transparent disclosure of probability-based item information, reflecting amendments to the Game Industry Promotion Act (Ministry of Culture, Sports, and Tourism). Additionally, to prevent “runaway games,” new provisions were introduced, requiring companies to operate a dedicated refund center for at least 30 days if the game service is terminated.
Moreover, the Electronic Commerce Act is currently being amended (submitted to the National Assembly on August 20) to impose the same consumer protection obligations on foreign game companies as on domestic ones, requiring them to designate a local representative to handle consumer complaints and disputes. The bill also includes the introduction of a consent decree system, allowing companies to propose corrective measures, including consumer financial compensation, even during the FTC’s deliberation process.
Once the amended Electronic Commerce Act is passed by the National Assembly, game companies will be able to propose remedies for consumers’ monetary damages in the event of deceptive practices, allowing users to receive compensation without having to go through collective dispute mediation or individual lawsuits.
This collective dispute mediation and the continuous promotion of policies to protect game users align with President Yoon Suk-yeol's statement at the recent public forum, emphasizing that "the most important aspect of fostering the game industry is consumer protection." It is expected to be a turning point for restoring the trust of domestic game users in the gaming industry.
The FTC will continue to promote policies that prevent harm to game users and broadly protect them, creating a safe and enjoyable gaming environment and fostering the growth of the gaming industry.