South Korea considers reforms to boost esports sector
Democratic Party of Korea (DPK) leader Jung Chung-rae has reiterated his party’s commitment to Korea’s gaming and esports sector. Speaking at G-STAR 2025 in Busan on 14 November, Jung highlighted the industry’s role in the country’s digital economy. G-STAR, held annually at BEXCO, is Korea’s largest gaming event and a key meeting point for developers, businesses, and policymakers. Jung stated that gaming is not just entertainment but an important part of Korea’s future economic strategy.
South Korea’s gaming legislation
Nearly two decades ago, Jung Chung-rae introduced Korea’s first Game Industry Act, establishing the legal framework for the country’s gaming sector. In 2004, when gaming was still a niche, data showed the industry generating four times the combined revenue of Korea’s drama, music, and film sectors.
The proposal faced resistance from policymakers and the public, who viewed games as addictive or harmful. Including terms like “esports” in the law was controversial. Despite opposition, Jung continued to advocate for gaming as a future growth driver. The law formalised esports and gave the industry the legitimacy needed to grow into a major cultural and economic sector.
Representative Chung stated, “At the time, there was a lot of opposition to including the legal term ‘e-sports’ due to the negative perception that ‘games are addictive.’ However, I continued to advocate for it as a future growth engine and a lucrative industry for Korea, and we passed the law.”
Policy discussions on gaming industry
Chung-rae reviewed exhibitions of new games, esports stadiums, and gaming technologies while touring the G-STAR expo at BEXCO. He reaffirmed the Democratic Party of Korea’s dedication to assisting the gaming industry during the on-site discussion. Concerns about restricted tax advantages, regulatory obstacles, the need for improved business–government cooperation, and difficulties in preserving global competitiveness were voiced by industry groups.
Chung-rae has spent the past 20 years promoting esports through various initiatives. He established an esports caucus within the National Assembly before the sector gained mainstream recognition. Jung organised a StarCraft tournament at the National Assembly Library to encourage esports culture. He also contributed to the creation of one of Korea’s earliest professional esports teams, MBCGame HERO.
Stalled initiatives and ongoing challenges
Chung-rae previously proposed integrating esports into the military’s Sangmu Athletic Corps to allow professional players to continue their careers during service, but the plan did not move forward. He also pushed for esports to be officially recognised by the Korean Sport & Olympic Committee, an effort that stalled.
Chung-rae expressed disappointment over the low level of presidential engagement in esports awards. He further explained, “I promised that, if I get the chance to meet the president, I will formally convey that request.”
Revision of Game Industry Act
A major update to the Game Industry Act, led by Rep. Cho Seung-rae, is expected to pass soon. Government ministries, including the Ministry of Economy and Finance, remain reluctant to offer tax benefits for gaming-related businesses. The Democratic Party of Korea’s Special Committee on Games, chaired by Kim Seong-hoe, will focus on identifying and removing institutional and legal barriers affecting the industry.
Gaming accounts for 63 percent of Korea’s K-content exports, surpassing combined revenues from K-pop, dramas, and films. The sector continues to strengthen Korea’s global presence through esports leagues and international game IPs.
Seung-rae said negotiations will continue to secure tax incentives and industry benefits despite resistance from ministries. Other party members stressed the need for a regulatory framework that allows gaming companies to operate with greater certainty.
Esports in national growth strategy
Past administrations played a role in shaping Korea’s esports leadership. Policies under Kim Dae-jung supported military service exemptions for elite gamers, while Roh Moo-hyun promoted Korea–China esports exchanges. Bilateral events during this period helped establish Korea as a global esports pioneer.
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