South Korean Government Bans Trading of Virtual Items, Gaming Auction Houses

The South Korean government has banned the trade of virtual items.

According to a report by Korea Times (via Eurogamer), the government made the decision to ban the trade and sale of all virtual items to encourage students not to waste time.

"The main purpose of the games is for entertainment and should be used for academic and other good purposes," said Kim Kap-soo, head of the government's content policy division.

The politician says that item collecting for commercial use is a "serious hindrance" to creating what he calls a "healthy game culture".

Anyone who violates the law by trading items online will be subject to a 50 million won ($43,000) fine and five years in prison. 

The law's introduction will essentially cripple games like World of Warcraft and the newly launched Diablo III, both of which rely on their implementation of an auction house for players to conduct their trades—in virtual currency.

It remains to be seen how the law will be enforced and what its negative repercussions will be. As it is with such broad sweeping laws, there will always be a few unintended consequences.

The new law comes into effect next month.