Although the developer has previously confirmed that characters hit by cars in inZOI can die, and the game's director Kim Hyung-jun has warned players to "be careful around roads," it has never said that children could suffer such deaths.
Krafton has now fixed the issue, and a spokesperson for Krafton said in a statement: "This issue was caused by an unanticipated bug that has been resolved in the latest patch. These scenes are extremely inappropriate and inconsistent with the production intentions and values of inZOI. We understand the seriousness of this matter and are committed to providing content suitable for all ages, and we are strengthening our internal review processes to prevent similar incidents from happening in the future."