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Business

South Korea’s FTC Slaps Nexon Korea Corp. with Record Fine for Deceptive Business Practices

In a landmark ruling, the Fair Trade Commission (FTC) of South Korea has slapped Nexon Korea Corp. with a hefty fine of 11.6 billion won (approximately $8.85 million) for deceptive business practices. The hefty penalty stems from irregularities related to the distribution of in-game items in two of Nexon’s popular titles, “MapleStory” and “Bubble Fighter”.

According to the FTC, between 2010 and 2021, Nexon Korea manipulated the odds associated with obtaining randomized items in these games without providing proper disclosure to the customers. This act of non-transparency, the FTC points out, is a direct violation of the Electronic Commerce Consumer Protection Act. To add salt to the wound, Nexon falsely announced in August 2011 that there had been no modifications to the item program, further eroding the trust of its loyal player base.

The 11.6 billion won fine is a record-breaking one, marking the highest amount ever imposed by the FTC for violations of the Electronic Commerce Consumer Protection Act. The regulator has accused Nexon of deliberately misleading customers with the intention of boosting sales. By withholding information on the adjustments to the odds of obtaining in-game items—an adjustment Nexon made hundreds of times during the period under scrutiny—the company successfully managed to keep the players in the dark while profiting off their ignorance.

Nexon’s actions were far from inconsequential with financial ramifications that reach into the billions of won. The revenue from MapleStory alone in 2020 was a staggering 560 billion won. Approximately 28 percent of the annual sales from this game can be attributed to the in-game item program, illustrating the massive financial scale of the deception.

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