South Korea Cracks Down on Deceptive Game Draw Rates as Webzen Fined

Key Takeaways

• Misleading Loot-Box Odds: Webzen advertised low but possible odds for rare items while hiding that players had a 0% chance until dozens of paid draws were made.
• Penalty Imposed: The KFTC issued a corrective order and fined Webzen $1.2 million (KRW 1.58 billion).
• Limited Compensation: Fewer than 5% of 20,226 affected players received refunds, prompting stronger sanctions.
• Regulatory Shift: Unlike similar cases earlier this year with lighter penalties, the KFTC signaled tougher enforcement when consumer harm isn’t adequately addressed.
• Future Oversight: Regulators plan to closely monitor how game companies disclose drop rates and will take strict action against violations.

Deep Dive

South Korea’s competition regulator has fined Webzen for misleading players about the chances of winning rare items in its hit mobile game MU Archangel. The Commission, chaired by Biung-ghi Ju, announced that Webzen will face a corrective order and administrative surcharges totaling KRW 1.58 billion (about USD $1.2 million) for using what officials described as deceptive practices tied to in-game “loot boxes.”

According to the regulator, Webzen sold three different draw-based items (the Set Treasure Draw Ticket, Festival Roulette Draw Ticket, and Jiryoung’s Treasure Draw Ticket) while advertising that users had a roughly 0.25% to 1.16% chance of getting special components. But those rare items were actually impossible to obtain until a player made dozens of paid draws first, somewhere between 51 and 150, depending on the item.

In other words, early purchasers faced a 0% chance of success, a “floor system” Webzen never disclosed.

The KFTC found that omission significant, noting that users bought the items believing those advertised odds applied from their very first purchase. Webzen did attempt to remedy the issue after the fact, offering partial refunds and compensation. But regulators determined that the harm was “hardly remedied”, fewer than 5% of the 20,226 affected players ultimately received compensation.

This stands in contrast to four other enforcement actions earlier this year, where game publishers corrected similar violations and provided broad restitution, leading the KFTC to issue only minor penalties. In Webzen’s case, the regulator opted for a stronger response: financial sanctions, plus mandated measures to prevent recurrence and a requirement to report those steps.

Regulators say the move is intended to send a clear message to the gaming industry that if companies profit from misleading loot-box mechanics and fail to properly make players whole, the consequences will escalate.

The KFTC says it will continue monitoring the disclosure of item-drop probabilities across online games and will impose “strict sanctions” when companies fall short—with an eye not only on preventing repeat violations, but on ensuring meaningful redress for players.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.