Given the popularity of persistent world games and the micro-transaction business model that surrounds them in MMO-mad South Korea, it was only a matter of time before the government started looking at ways to tax the industry.

Next Generation reports that gamers selling over 6,500 USD worth of in-game items or currency in a single year will now have VAT (Value Added Tax) automatically applied, by service providers. Gamers selling over 13,000 USD worth of game items a year will now be considered a small business, with individuals involved required to obtain licenses, pay taxes, and the like.

"NTS (National Tax Service) would be able to track all transactions for taxation of virtual items," spokesperson Mr. Choi explained. "This is not about defining RMT (Real Money Transactions) legal/illegal; we don’t see any contradictory facts to Amendment for Game Industry Promoting Law - we are not about to judge if RMT is or not," he affirmed, amid fears the authorities could crack down on the booming market altogether.

No response from the games has been offered yet, though given that many game makers regard all in-game items as their possessions then it seems likely there could be some legal wrangling ahead.

By Luke Guttridge