There are plenty of other types of competitions where fraud carries legal penalties, after all.
Isn't that the case of most countries, at least in the West? If you look at the median age of most public officials (ministers and all), they are usually more likely to be in their 50,60s and 70s in some cases.
Before that it was a Japanese colony, and before that it was a die-hard confucian kingdom that would out-Confucius contemporary China.
Old moralities die hard. (Think of how racism persists in the US, 150+ years after the Civil War.) It didn't help that we imported right-wing American Christian ideology wholesale after the Korean War. :/
But actually they were quite compatible, come to think about it. Hard working will reward you, be obedient to your elders, your family and your country before you, men decide and women follow, yadda yadda.
Edit: Of course many American soldiers who fought weren't actually right-wing Christian evangelists, but we didn't know it then. Koreans didn't speak good English on 1953: our perception of America (and what it stood for) was warped by whoever was willing to learn Korean... and a lot of them did it to spread the gospel of Jesus, I guess.
https://www.quora.com/What-are-the-main-differences-between-...
Many of the people in government right now were probably into competitive gaming back then, so it makes sense that relatively more interest would go into gaming-related legislation.