The South Korean FSC has approved the establishment of a virtual asset division, consisting of a total of 12 dedicated staff members.

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Financial Services Commission Reorganization Plan Approved by State Council

The Financial Services Commission of South Korea has passed an organizational restructuring plan at the State Council, which includes the establishment of a digital financial policy officer and a department related to virtual assets, aimed at proactively addressing changes in the financial environment.

South Korea plans to establish a "Virtual Assets Division" by the end of June to protect user assets, with civil servants prohibited from holding virtual assets.

Digital Financial Policy Officer Launched, Establishes Dedicated Virtual Asset Department

Since July 2018, the Financial Innovation Planning Group, which has been temporarily operational for about six years, will now operate as a digital financial policy officer to address the development of new technologies such as artificial intelligence, big data, blockchain, and support the growth of financial technology and large tech companies. With formal organization, 12 employees have been converted to regular positions, and five civil servants at level five have been added to handle the application of artificial intelligence in the financial sector.

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Establishment of Virtual Assets Division to Strengthen User Protection

In response to the "Virtual Asset User Protection Act" scheduled to be implemented on July 19, 2024, a Virtual Assets Division has been newly established under the digital financial policy officer. The Virtual Assets Division will operate temporarily to establish order in the virtual asset market and oversee the management and supervision of user protection. Additionally, the Virtual Assets Division plans to actively address unfair trading of virtual assets through sanctions such as fines and criminal prosecution.

Dedicated Department for Anti-Money Laundering of Virtual Assets to Continue Until the End of 2025

The temporary Financial Intelligence Unit (FIU) operational planning officer and the Virtual Asset Inspection Department will have their term extended until the end of 2025.

This is to continue fulfilling the obligations related to anti-money laundering for virtual asset operators under the international anti-money laundering organization FATF standards and the "Specific Financial Information Act." Furthermore, efforts will continue to regulate, inspect, and sanction virtual asset operators.

Enhancing Manpower to Address Fair Trading in Capital Markets

To strengthen the response to unfair trading in capital markets, three investigators have been added. This is due to the increasing complexity of forms and methods of unfair trading in capital markets, as well as the significant increase in capital market investors, leading to the expansion of unfair trading incidents and damages. The additional investigators will actively carry out new tasks such as fines, estimation of illegal profits, and voluntary disclosure reductions.

Future Schedule and Other Restructuring Contents

The Financial Services Commission's organizational restructuring plan approved by the South Korean State Council will be announced and implemented on June 25. Additionally, new positions such as the Chief of Meeting Operations Information and the Chief of Accounting System have been established using the total manpower funding system. The Chief of Meeting Operations Information will support the smooth operation of the Financial Services Commission and oversee the departmental cooperation in informatization, while the Chief of Accounting System will be responsible for policy work related to corporate accounting.