[Edaily Reporter Ahn Yu-ri] #The acquisition of One Store by Nexthuss has once again brought to light the limitations of domestic Web3 game regulations. This is because Jang Hyun-guk, CEO of Nexthuss, recently adopted a two-track strategy to separate domestic and overseas operations in light of the domestic regulatory environment.

Under its vision to develop OneStore into a global Web3 gaming platform, Nexthuss has established a strategy to position it as a full-stack gaming hub for Web2 games in South Korea.

In a YouTube video released on the 18th explaining the rationale behind the acquisition, CEO Jang Hyun-guk stated, “Web3 games are not permitted in the domestic market,” adding, “We need to increase One Store’s market share, which has recently been stagnant.”

Currently, in South Korea, P2E (Play-to-Earn) games and NFT-based game services are effectively impossible under the Game Industry Act and the rating classification standards of the Game Rating and Administration Committee.

The current Game Industry Act generally prohibits the provision of prizes based on game performance, allowing only small-value prizes as an exception. The Game Rating and Administration Committee refuses to grant ratings for games where NFTs, coins, or tokens obtained in-game can be converted into cash, citing concerns that this could encourage gambling.

Consequently, major domestic game companies are implementing a two-track strategy that separates domestic and international ecosystems in the Web3 sector.

Even companies that previously focused on launching P2E games and expanding token ecosystems have recently shifted the focus of their blockchain businesses toward validating blockchain utilization models linked to game IPs and building payment and distribution infrastructure.

Nexon Universe’s blockchain MMORPG (massively multiplayer online role-playing game) “MapleStory N” and its ecosystem platform “MapleStory Universe (MSU)” are currently available in markets other than South Korea and China.

Following the departure of CEO Jang Hyun-guk, Wemade’s blockchain business strategy has been reorganized around the principle of “selection and concentration.” With a focus on strengthening token utility and building communities, the company is currently concentrating on stablecoin infrastructure projects.

P2E Loses Steam in Yeouido; Legislative Discussions Stalled in a Paralyzed National Assembly

Discussions on relaxing regulations for domestic Web3 games are also showing little progress. Late last year, an amendment to the Game Industry Act—which removed the “prohibition on offering prizes”—was proposed, raising hopes that one of the legal barriers blocking domestic P2E and NFTs might be removed. However, the bill failed to pass the relevant standing committee in the National Assembly.

Even if the prize clause were removed under this amendment, regulations related to cash redemption and gambling would remain in place, making it difficult to view this as automatic authorization of P2E.

The industry believes that the institutionalization of P2E in Korea must proceed in tandem with the revision of regulations related to virtual assets, such as initial coin offerings (ICOs). However, discussions on the second phase of virtual asset legislation are also stalling due to pending issues regarding the shareholdings of major shareholders in virtual asset exchanges and stablecoin infrastructure.

Currently, the 22nd National Assembly is in the process of forming its second-half leadership, so discussions on related legislation are inevitably being pushed to the back burner. While the ruling and opposition parties are continuing negotiations on the second-half leadership, they remain at an impasse over the chairmanship of the Legislation and Judiciary Committee and have yet to find a way forward.