Opening a Claw Machine Shop: Youth Game Arcade Registration — The 10,000 Won Prize Limit and School-Zone Restrictions

Procedure

1. 1. Check the shop location and building use

   A youth game arcade cannot operate in an absolute protection zone, which extends 50 meters in a straight line from a school gate, and in a relative protection zone, which extends 200 meters from the school boundary, registration may be applied for only after the regional educational environment protection committee reviews the case and decides to exclude the business from the prohibited activities and facilities. Protection zones around kindergartens and universities are not subject to this restriction. If the total floor area used for game-related facilities in the same building is less than 500 square meters, the building use must be Class 2 neighborhood living facility; if it is 500 square meters or more, it must be a sales facility.

2. 2. Prepare the facility standards and safety documents

   The shop must have no private rooms or enclosed spaces, indoor lighting of at least 40 lux and transparent windows so the inside can be seen from outside, and the sign must show the registered business name. If the shop is on a floor covered by the multi-use business rules, such as a basement or the 2nd floor or above, a certificate of completion of safety facilities from the fire station is required; a shop on the 1st floor above ground or a floor directly at ground level whose main entrance connects directly to the outside ground is exempt. The electrical safety inspection certificate is checked by the official in charge through shared administrative information.

3. 3. Confirm the rating classification of the machines

   A youth game arcade may only install games rated "All Ages" by the Game Rating and Administration Committee. When buying or leasing machines, obtain a copy of the rating classification certificate from the manufacturer or distributor and check that the rating label on the machine and its prize-dispensing device match what was rated. Installing a machine modified to differ from its rated content is punishable by imprisonment of up to 2 years or a fine of up to 20,000,000 won.

4. 4. Apply for registration at the city, county or district office

   Submit the registration application to the city, county or district office for the business location, together with a copy of the lease (if leased) and an outline of business facilities, equipment and installations that includes the floor area and the types of game machines. The office checks the facility standards, whether a certificate of completion of safety facilities has been issued and whether an educational environment protection review was held; the form lists a processing period of 3 days, and the fee is set by local ordinance. Once the registration certificate is issued, post it where visitors can easily see it.

5. 5. Rules to follow while operating, and change registration

   If machines that can award prizes exceed 20 percent of all machines in number and installed area, business hours are from 9 a.m. to 12 midnight, and minors may enter only from 9 a.m. to 10 p.m. unless accompanied by a guardian. A shop that gives prizes must prevent 1 person from using 2 or more machines at the same time and must post a notice of at least 50 cm by 50 cm covering minors' entry hours, prize-handling rules, business hours and similar items. If registered details such as the representative, business name, location or floor area change, apply for change registration; report succession within 30 days of taking over the business, and report closure within 7 days of closing.

Required documents

• Registration application for youth game arcade business and internet computer game facility business (Enforcement Rules of the Game Industry Promotion Act, Annexed Form No. 6)
• Copy of the business premises lease (if leased)
• Outline of business facilities, equipment and installations (including floor area and types of game machines)
• Certificate of completion of safety facilities (if the floor and structure fall under the multi-use business rules)
• Notice of the decision excluding the business from prohibited activities and facilities in the educational environment protection zone (if in a relative protection zone)
• Electrical safety inspection certificate (submitted directly if the applicant does not consent to shared administrative information)
• Copies of the rating classification certificates for the machines to be installed (reference material obtained from the manufacturer or distributor)
• Letter of authorization (when submitted by a representative)

Fees

Typically tens of thousands to several hundred thousand won in the industry · We provide a quote after consultation, depending on whether an educational environment protection review is needed, whether a certificate of completion of safety facilities is required, and the number of machines and size of the shop. Government fees are separate.

See fees and official charges for this service →

Legal basis and review date

• Game Industry Promotion Act, Article 2
• Game Industry Promotion Act, Article 21
• Game Industry Promotion Act, Article 26
• Game Industry Promotion Act, Article 28
• Game Industry Promotion Act, Article 32
• Game Industry Promotion Act, Article 45
• Enforcement Decree of the Game Industry Promotion Act, Article 16
• Enforcement Decree of the Game Industry Promotion Act, Article 16-2
• Enforcement Decree of the Game Industry Promotion Act, Annexed Table 2
• Enforcement Rules of the Game Industry Promotion Act, Article 16
• Enforcement Rules of the Game Industry Promotion Act, Article 20
• Enforcement Rules of the Game Industry Promotion Act, Article 21
• Enforcement Rules of the Game Industry Promotion Act, Annexed Table 4
• Enforcement Rules of the Game Industry Promotion Act, Annexed Form No. 6
• Educational Environment Protection Act, Article 8
• Educational Environment Protection Act, Article 9
• Enforcement Decree of the Special Act on the Safety Control of Publicly Used Establishments, Article 2
• Enforcement Decree of the Building Act, Annexed Table 1

Checked against the statutes on 2026-10-10

Statutes and public notices change, so each case needs to be checked individually. Statute titles are given in English for reference. The Korean statutes are the authoritative text.

Check these first

• If you sign a lease first and check the educational environment protection zone or building use later, you may be unable to register while still paying rent, so check the location before signing.
• Installing machines whose prize-dispensing device or game content has been changed from what was rated, or exchanging prizes for money or buying them back, is subject to criminal penalties.

Frequently asked questions