Representative Kim Sung-hoe of the Democratic Party of Korea visited the Korea Association of Game Industry (K-GAMES) booth at the National Assembly Legislative Expo on November 5. Rep. Kim stated that he would consider raising questions during the National Assembly's Special Committee on Budgets and Accounts (hereinafter referred to as the Budget Committee) meeting held on the same day regarding the game content production tax credits requested by the association. Rep. Kim previously served as the chairman of the Democratic Party's 2nd Special Committee on Games.
Rep. Kim carefully toured the association's booth set up on the central lawn of the National Assembly. Among the five major legislative tasks presented by the association, he showed the most interest in improving the identity verification system for games rated All Ages. The initiative aims to simplify the registration process for online games rated All Ages, with the association explaining that it seeks to streamline regulatory measures while maintaining the core principles of preventing speculative behavior and protecting users.
Tax credits were the primary task highlighted by the association at this expo. Under the current Restriction of Special Taxation Act, production tax credits apply to movies, TV dramas, OTT video content, and webtoons, but video games are excluded. The association proposed adding game products to the tax credit coverage with a base deduction rate of 10% (15% for small and medium-sized enterprises). The proposal also includes making annual post-launch production costs eligible for tax deductions.
If the inquiry is made, industry demands raised at the expo booth will effectively move to the floor of the National Assembly's budget review. At the expo, the association displayed five panels corresponding to each task and delivered a policy document titled "Five Major Legislative Tasks for a New Leap Forward in the Game Industry" to key officials from the National Assembly and the government.
This is the first year the association has participated in the Legislative Expo. Marking its second year, the National Assembly Legislative Expo runs through November 6 at the central lawn of the National Assembly.
