Innovation by Constraint: The Unintended Effects of Korean Videogame Governance
Research Article  ·  Published: 13 May 2026
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Journal of Social Systems and Policy Analysis
Volume 3, Issue 2, 2026: 100-108
Research Article Open Access

Innovation by Constraint: The Unintended Effects of Korean Videogame Governance

1 Department of Global Fine Art, Kyonggi University, Suwon-si 16227, Republic of Korea
2 Department of Global Business, Kyonggi University, Suwon-si 16227, Republic of Korea
* Corresponding Author: Hengran Yang, [email protected]
Volume 3, Issue 2
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Article Information

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.

Graphical Abstract

Innovation by Constraint: The Unintended Effects of Korean Videogame Governance

Keywords

South Korean game industry industrial policy game regulation shutdown law innovation mobile gaming

Data Availability Statement

Data will be made available on request.

Funding

This work was supported without any funding.

Conflicts of Interest

The authors declare no conflicts of interest.

AI Use Statement

The authors declare that no generative AI was used in the preparation of this manuscript.

Ethical Approval and Consent to Participate

Not applicable.

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Cite This Article

APA Style
Yang, H., & Duan, X. (2026). Innovation by Constraint: The Unintended Effects of Korean Videogame Governance. Journal of Social Systems and Policy Analysis, 3(2), 100-108. https://doi.org/10.62762/JSSPA.2025.735971
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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  - 
BibTeX Format
Compatible with LaTeX, BibTeX, and other reference managers
@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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CC BY Copyright © 2026 by the Author(s). Published by Institute of Central Computation and Knowledge. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made.
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