Innovation by Constraint: The Unintended Effects of Korean Videogame Governance
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Abstract
South Korea's ascent as a video game titan is not a simple narrative of state-led industrial success. This paper analyzes the dualistic nature of the Korean government's game policy, from the post-financial crisis ``informatization'' drive and the foundational Game Industry Promotion Act, to restrictive regulations such as the ``Shutdown Law'' and debates on game addiction. The core argument is that this paradoxical policy environment—simultaneously fostering innovation while imposing social controls—created unique evolutionary pressure. This pressure inadvertently accelerated the industry's pivot to mobile platforms, refined hyper-competitive monetization models, and drove an aggressive global export strategy as a hedge against domestic regulatory risks. By examining key legislative milestones, market data, and corporate strategies, this paper demonstrates how the friction between promotion and restriction acted as a catalyst, ultimately shaping today's technologically advanced, commercially aggressive, and resilient South Korean gaming industry.
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References
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TY - JOUR AU - Yang, Hengran AU - Duan, Xingzhao PY - 2026 DA - 2026/05/13 TI - Innovation by Constraint: The Unintended Effects of Korean Videogame Governance JO - Journal of Social Systems and Policy Analysis T2 - Journal of Social Systems and Policy Analysis JF - Journal of Social Systems and Policy Analysis VL - 3 IS - 2 SP - 100 EP - 108 DO - 10.62762/JSSPA.2025.735971 UR - https://www.icck.org/article/abs/JSSPA.2025.735971 KW - South Korean game industry KW - industrial policy KW - game regulation KW - shutdown law KW - innovation KW - mobile gaming AB - South Korea's ascent as a video game titan is not a simple narrative of state-led industrial success. This paper analyzes the dualistic nature of the Korean government's game policy, from the post-financial crisis ``informatization'' drive and the foundational Game Industry Promotion Act, to restrictive regulations such as the ``Shutdown Law'' and debates on game addiction. The core argument is that this paradoxical policy environment—simultaneously fostering innovation while imposing social controls—created unique evolutionary pressure. This pressure inadvertently accelerated the industry's pivot to mobile platforms, refined hyper-competitive monetization models, and drove an aggressive global export strategy as a hedge against domestic regulatory risks. By examining key legislative milestones, market data, and corporate strategies, this paper demonstrates how the friction between promotion and restriction acted as a catalyst, ultimately shaping today's technologically advanced, commercially aggressive, and resilient South Korean gaming industry. SN - 3068-5540 PB - Institute of Central Computation and Knowledge LA - English ER -
@article{Yang2026Innovation,
author = {Hengran Yang and Xingzhao Duan},
title = {Innovation by Constraint: The Unintended Effects of Korean Videogame Governance},
journal = {Journal of Social Systems and Policy Analysis},
year = {2026},
volume = {3},
number = {2},
pages = {100-108},
doi = {10.62762/JSSPA.2025.735971},
url = {https://www.icck.org/article/abs/JSSPA.2025.735971},
abstract = {South Korea's ascent as a video game titan is not a simple narrative of state-led industrial success. This paper analyzes the dualistic nature of the Korean government's game policy, from the post-financial crisis ``informatization'' drive and the foundational Game Industry Promotion Act, to restrictive regulations such as the ``Shutdown Law'' and debates on game addiction. The core argument is that this paradoxical policy environment—simultaneously fostering innovation while imposing social controls—created unique evolutionary pressure. This pressure inadvertently accelerated the industry's pivot to mobile platforms, refined hyper-competitive monetization models, and drove an aggressive global export strategy as a hedge against domestic regulatory risks. By examining key legislative milestones, market data, and corporate strategies, this paper demonstrates how the friction between promotion and restriction acted as a catalyst, ultimately shaping today's technologically advanced, commercially aggressive, and resilient South Korean gaming industry.},
keywords = {South Korean game industry, industrial policy, game regulation, shutdown law, innovation, mobile gaming},
issn = {3068-5540},
publisher = {Institute of Central Computation and Knowledge}
}
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