Core Viewpoint - The implementation of the domestic agent system in South Korea aims to facilitate communication between domestic users and overseas game companies while enhancing the management and supervision of foreign enterprises violating local distribution order [1]. Summary by Sections New Compliance System - The domestic agent system mandates that overseas game companies meeting certain criteria must designate a domestic agent in South Korea. This applies to companies that distribute or provide games without a physical presence in Korea and meet either a revenue threshold of 1 trillion KRW (approximately 5.2 billion RMB) or a daily download threshold of over 1,000 for a single mobile game [2]. Impact on Chinese Game Companies - Approximately 90 foreign game companies are expected to be affected by the new domestic agent system. Chinese game companies must ensure that their designated agents have a physical presence in Korea and provide effective communication channels. If a Chinese company has a subsidiary in Korea that does not handle game operations, it still needs to appoint a domestic agent [3]. Regulatory Trends - The domestic agent system is part of a broader trend of tightening regulations in the South Korean gaming market, with multiple amendments to the Game Industry Promotion Act since 2023. The new regulations include strict oversight of game content and user data protection [5]. Global Regulatory Environment - The tightening of regulations is not limited to South Korea; similar trends are observed globally, with the U.S. Federal Trade Commission increasing scrutiny on the gaming industry, particularly regarding data privacy and consumer protection. Japan is also enhancing tax compliance for overseas game companies [6][7]. Recommendations for Game Companies - Game companies are advised to establish internal mechanisms for timely regulatory communication and to adopt a forward-thinking approach to monitor legal developments and enforcement priorities in various countries [7].