Blizzard's Seoul division is under the eye of the South Korean government, who has decided to launch an investigation into whether the company violated the country's electronic commerce law when it launched Diablo III. The investigation hopes to determine if Blizzard knowingly launched Diablo III and made it an online game while not providing the necessary servers and networks needed to handle demand. But that's is not really what the investigation is about; when South Koreans demanded a refund for the trouble they encountered at launch, Blizzard did not comply.
While Blizzard's policy is that it does not give refunds for a game "already in use," South Korean law says that companies must give a refund within seven days of the sale of a game if a customer asks for it and the customer is not at fault for whatever the problem is. Some did ask for it and did not get it.
While Blizzard announced last week that it had set up additional servers in Asia to deal with connection issues, this did not stop the South Korean government from launching an investigation.
Around 10 percent of Blizzard's Diablo III sales come from South Korea.
We will have more on this story as information becomes available.