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Ulsan will become the first region in Korea to implement a response system designed to close the "gap" that has allowed illegal adult PC rooms to dodge sanctions by voluntarily closing or changing ownership after a police crackdown but before administrative penalties are finalized. Rather than handing over case results only after an investigation concludes, police will now quickly pass along investigative materials gathered early in the crackdown to local governments, allowing them to begin the notification process as soon as they determine administrative action can proceed.

According to police on the 11th, the Ulsan Metropolitan Government, Ulsan Metropolitan Police Agency, five district and county offices, and the Game Rating and Administration Committee will sign a cooperation agreement on the 12th at Ulsan City Hall titled "Agreement on Eradicating Illegal and Gambling-Style PC Rooms." The core goal is to reduce the time gap between police crackdowns and local government administrative penalties, sharing relevant information to block operators from dodging sanctions through closure or ownership changes.

Until now, when police uncovered illegal currency exchange operations, they would first notify local governments that a crackdown had occurred, then separately notify them of the criminal facts and violated laws once the investigation concluded. For cases involving unarrested suspects, the process from crackdown to case referral typically took two to three months — a window during which business owners could close up shop or change the registered representative.

In one actual case, an adult PC room in Ulsan closed just 13 days after being raided in April of last year for illegal currency exchange. Police notified authorities of the case results after referring it that July, but by then the business had already closed, making administrative action impossible — and by October of the same year, a PC room reopened at the same location under a different owner's name. In another case, a business changed its registered representative just three days after being notified of the police crackdown, then continued operating through multiple subsequent ownership transfers.

In response, the Ulsan Metropolitan Police Agency has decided that when specific violations are confirmed during a crackdown — such as through the execution of a search and seizure warrant — it will quickly provide local governments with early investigative materials, including the criminal facts, violated laws, and details of the crackdown. If the local government determines, based on the materials received, that it can initiate administrative proceedings under relevant law, it will issue prior notice and proceed with administrative procedures, including allowing the party to submit their position.

Under the Game Industry Promotion Act, if a business re-registers under the same type of operation at the same location within one year of closing, it inherits the status of the previous operator, and if administrative sanctions were already underway, those proceedings can continue against the new operator. Police believe that by expediting the transfer of initial investigative materials, allowing local governments to decide earlier whether to initiate administrative proceedings, they can reduce sanction evasion through closures and ownership changes.

Information sharing and joint response between agencies will also be strengthened. Within the scope allowed by law, local governments' business registration, representative-change, and administrative penalty information will be shared with police data on repeat complaints and crackdowns, and police, local governments, and the Game Rating Committee will hold working-level consultations to pursue inspections and crackdowns targeting repeat offenders.

Discussions on institutional reform at the national level have also begun. The National Police Agency and the Ministry of Culture, Sports and Tourism held a policy improvement council meeting last month with provincial police agencies and the Game Rating Committee to discuss ways to improve management of adult PC rooms. Under consideration are measures to strengthen registration requirements for adult PC rooms — currently managed under the same business category as regular PC rooms — subdivide business types, and introduce a licensing system.

An Ulsan Metropolitan Police Agency official said, "Previously, the initial notification didn't include enough specific facts, which inevitably delayed administrative action," adding, "The key is to quickly provide early investigative materials from the crackdown stage so local governments can decide sooner whether to initiate administrative proceedings."

                                                                                                          Seol So-young