In South Korea, Cyberspace Currency is Equal to Real Money

The Supreme Court held in South Korea has decided that using virtual currency in cyberspace is the equivalent of real money. According to experts, this precedent may eventually have effects in other parts of the world.

South Korea's Supreme Court made it clear that the virtual currency used in various online games and services is the equivalent of real money and may be freely exchanged to one another. (Source: "The Korea Times")

According to the country's lawyers and computer game experts, such a legal precedent should significantly contribute to online gaming and other virtual entertainment development which will draw users not only to spend some time but also to earn money.

South Korea's Supreme Court dealt with two video game enthusiasts, who earned about 20 million won (approximately $17 700) from virtual currency exchange in a popular video game called "Lineage 2". They have been exchanging "Aden" (so called money in the world of "Lineage 2") which they have been earned in the game into the South Korean currency: 1 million "Aden" to 8 thousand won.

In 2008 these players were sentenced by the Court and they were fined for 2 and 4 million won fines. In addition, the court prohibited the virtual money exchange into the real currency. But then, the appeal court canceled the conviction and the Supreme Court has put an end to this case.

Appellate Court Judge Min-Young said that the exchange for in-game earned virtual money into cash should be prohibited only when they are made in internet gambling like poker.

A final decision has caused controversy under judicial response. For example, some people, like Dankuko Professor Chung Hae-sangis, believe that the court decision opens up a brighter prospect of South Korean computer game industry, which development was limited because of the strict restrictions. Others, including various public organizations and students' parents, argue that the validation of virtual money will be a bad incentive for the younger generation.

According to analysts, in 2008 various virtual currencies used in South Korea exceeded 1 trillion won of real currency and continue to grow rapidly. Online entertainment business is already becoming an important branch of economy in many countries: for example, in China, the income from online games is already approaching $3 billion per year.
Source: http://www.koreatimes.co.kr/www/news/nation/2010/01/116_58775.html