This is a case commentary on a matter in which Atlas Legal represented a South Korean online game company whose former employee spread false claims — including allegations of rigged gameplay and unauthorized user data access — across gaming community forums. Our team established the falsity of all three claims through source code and server log analysis, leading police to forward the case to prosecutors with a recommendation for indictment on charges of business interference and defamation under South Korean law.
Case Overview
Y, a former employee of Company X — a South Korean online game developer — posted on gaming community forums claiming the game contained a “winning bot” that prevented regular players from ever winning, that a hidden “viewer” function allowed the company to secretly monitor users’ in-game items, and that Company X was systematically destroying evidence. The posts spread rapidly across gaming communities and social media. Daily active users fell by approximately 30%, with existing users leaving the platform and a wave of refund demands following in short order.
Legal Framework: Business Interference by False Facts
Under Article 314(1) of the Criminal Act of South Korea, spreading false facts to interfere with another’s business is punishable by up to five years imprisonment or a fine of up to KRW 15 million. Business interference is an abstract endangerment offense — actual damage need not occur; the risk of interference is sufficient to establish the crime. Where false claims are disseminated via online platforms, Article 70(2) of the Act on Promotion of Information and Communications Network Utilization and Information Protection (ICN Act) may additionally apply, carrying penalties of up to seven years imprisonment or a fine of up to KRW 50 million.
Establishing Falsity and Intent
The Supreme Court of Korea requires that the perpetrator have actively recognized the falsity of the information at the time of dissemination (Supreme Court Decision 93Do1278, January 28, 1994). Atlas Legal’s legal team submitted a source code analysis report confirming the absence of any winning bot functionality, server access logs confirming no unauthorized data access had occurred, and internal records establishing that the activity Y characterized as “evidence destruction” was routine system maintenance. Because Y had direct insider knowledge of the company’s technical architecture, there was no credible basis for claiming genuine belief in the existence of features that did not exist.
Key Court Precedents
South Korean courts have confirmed that even where underlying facts are true, adding false information to a sufficient degree such that there is a risk of business interference will satisfy the offense (Supreme Court Decision 2006Do1580, September 8, 2006). Conversely, two acquittal cases — involving SNS posts about alleged harmful ingredients in baby wipes (Seoul High Court Decision 2018No1809) and a false post about a redevelopment committee (Seoul Eastern District Court Decision 2012Gojeong831) — confirm that the intent element requires active recognition of falsity, which an insider with direct system knowledge cannot credibly disclaim.
Corporate Response Framework
Companies facing online misinformation should act on five fronts: preserve evidence immediately via screenshots, notarization, or web archiving before posts are deleted; request interim takedown measures from platform operators under Article 44-2 of the ICN Act; prepare technical evidence to establish the falsity of the claims; file a criminal complaint for business interference and ICN Act defamation; and consider concurrent civil damages claims. For prevention, NDA execution at the time of departure, systematic retention of system logs, and online monitoring systems are among the most effective measures.
Atlas Legal’s Practice
Atlas Legal is a corporate law firm based in Incheon Songdo, South Korea, with dedicated practice groups in corporate advisory, corporate disputes, and white-collar criminal defense. Our team has handled numerous cases involving online defamation and business interference in the IT and gaming industries, with experience in source code analysis, server log review, and digital forensic evidence. We provide comprehensive legal services in English to foreign nationals and international businesses operating in South Korea.
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Business Interference by False Facts in South Korea – Criminal Referral Case
This is a case commentary on a matter in which Atlas Legal represented a South Korean online game company whose former employee spread false claims — including allegations of rigged gameplay and unauthorized user data access — across gaming community forums. Our team established the falsity of all three claims through source code and server log analysis, leading police to forward the case to prosecutors with a recommendation for indictment on charges of business interference and defamation under South Korean law.
Case Overview
Y, a former employee of Company X — a South Korean online game developer — posted on gaming community forums claiming the game contained a “winning bot” that prevented regular players from ever winning, that a hidden “viewer” function allowed the company to secretly monitor users’ in-game items, and that Company X was systematically destroying evidence. The posts spread rapidly across gaming communities and social media. Daily active users fell by approximately 30%, with existing users leaving the platform and a wave of refund demands following in short order.
Legal Framework: Business Interference by False Facts
Under Article 314(1) of the Criminal Act of South Korea, spreading false facts to interfere with another’s business is punishable by up to five years imprisonment or a fine of up to KRW 15 million. Business interference is an abstract endangerment offense — actual damage need not occur; the risk of interference is sufficient to establish the crime. Where false claims are disseminated via online platforms, Article 70(2) of the Act on Promotion of Information and Communications Network Utilization and Information Protection (ICN Act) may additionally apply, carrying penalties of up to seven years imprisonment or a fine of up to KRW 50 million.
Establishing Falsity and Intent
The Supreme Court of Korea requires that the perpetrator have actively recognized the falsity of the information at the time of dissemination (Supreme Court Decision 93Do1278, January 28, 1994). Atlas Legal’s legal team submitted a source code analysis report confirming the absence of any winning bot functionality, server access logs confirming no unauthorized data access had occurred, and internal records establishing that the activity Y characterized as “evidence destruction” was routine system maintenance. Because Y had direct insider knowledge of the company’s technical architecture, there was no credible basis for claiming genuine belief in the existence of features that did not exist.
Key Court Precedents
South Korean courts have confirmed that even where underlying facts are true, adding false information to a sufficient degree such that there is a risk of business interference will satisfy the offense (Supreme Court Decision 2006Do1580, September 8, 2006). Conversely, two acquittal cases — involving SNS posts about alleged harmful ingredients in baby wipes (Seoul High Court Decision 2018No1809) and a false post about a redevelopment committee (Seoul Eastern District Court Decision 2012Gojeong831) — confirm that the intent element requires active recognition of falsity, which an insider with direct system knowledge cannot credibly disclaim.
Corporate Response Framework
Companies facing online misinformation should act on five fronts: preserve evidence immediately via screenshots, notarization, or web archiving before posts are deleted; request interim takedown measures from platform operators under Article 44-2 of the ICN Act; prepare technical evidence to establish the falsity of the claims; file a criminal complaint for business interference and ICN Act defamation; and consider concurrent civil damages claims. For prevention, NDA execution at the time of departure, systematic retention of system logs, and online monitoring systems are among the most effective measures.
Atlas Legal’s Practice
Atlas Legal is a corporate law firm based in Incheon Songdo, South Korea, with dedicated practice groups in corporate advisory, corporate disputes, and white-collar criminal defense. Our team has handled numerous cases involving online defamation and business interference in the IT and gaming industries, with experience in source code analysis, server log review, and digital forensic evidence. We provide comprehensive legal services in English to foreign nationals and international businesses operating in South Korea.
Click here for detailed information