PS2 mod chips are now legal in Australia. The highest Australian court decided in
Stevens v. Sony to overturn a lower court ruling that PS2 mod chips were 'technological protection measures' which would run afoul of the Australian DMCA-equivalent. Because they do not protect copyrights per se, but are rather region coding devices, they were ruled to be regional coding devices. In another case
(Sony vs Connectix) Sony took its copyright violation case against PlayStation emulator developer Connectix to the US Supreme Court , but found that body would not back its demand that Connectix's Virtual Game Station be banned.
I'm not too sure if it is legal in South Africa, maybe someone with experience can give me insight?
BTW, Buying or making copies of original games is piracy ;)