South Koreas Financial Services Commission Approves Establishment of Virtual Asset Division with a Total of 12 Dedicated Staff Members

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Financial Committee Organizational Restructuring Plan Approved by State Council
Digital Financial Policy Officer Initiated, Establishing Virtual Assets Department
Establishment of Virtual Assets Department to Enhance User Protection
Virtual Asset Anti-Money Laundering Department to Continue Until the End of 2025
Strengthening Capital Market Fair Trading Response Manpower
Future Agenda and Other Restructuring Contents
Financial Committee Organizational Restructuring Plan Approved by State Council
The South Korean Financial Committee approved the organizational restructuring plan at the State Council, including the establishment of a Digital Financial Policy Officer and departments related to virtual assets, aiming to actively respond to changes in the financial environment.
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South Korea plans to establish a “Virtual Asset Department” by the end of June, aiming to protect user assets, with civil servants prohibited from holding virtual assets
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Since July 2018, the Financial Innovation Planning Team, which has been temporarily operating for about six years, will now operate as a Digital Financial Policy Officer, addressing the development of new technologies such as artificial intelligence, big data, blockchain, and supporting the growth of financial technology and large technology companies. With formal organization, 12 employees have been converted to regular positions, and five-level civil servants responsible for the application of artificial intelligence in the financial sector have been added.
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Taiwan Special Law Public Hearing|Commissioner Luo Mingcai: Special Law Progress Too Slow, FSC Special Only Six People, Will Discuss Virtual Asset Management Bureau
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In response to the “Virtual Asset User Protection Act”, which will be implemented on July 19, 2024, a Virtual Assets Department has been established under the Digital Financial Policy Officer. The Virtual Assets Department will operate temporarily, responsible for establishing order in the virtual asset market and managing and supervising user protection. At the same time, the Virtual Assets Department plans to actively address unfair trading of virtual assets, conducting sanctions such as fines, criminal prosecutions, etc.
The temporary establishment of the Financial Intelligence Analysis Institute (FIU) planning officer and the extension of the Virtual Asset Inspection Department will continue until the end of 2025.
This is to continue to fulfill the obligations of virtual asset operators to prevent money laundering under the FATF standards and the Specific Financial Information Act. In addition, regulatory, inspection, and sanction work on virtual asset operators will continue.
To strengthen the response to unfair trading in the capital market, three investigators have been added. This is because the forms and methods of unfair trading in the capital market have become more cunning recently, and the number of capital market investors has increased significantly, leading to an increase in unfair trading events and damages. The new investigators will actively carry out new tasks such as fines, estimates of illegal profits, and voluntary declaration reductions.
The Financial Committee’s organizational restructuring plan approved by the South Korean State Council will be announced and implemented on June 25. In addition, a Chief of Conference Operation Information and a Chief of Accounting System have been newly established using the total manpower fund system. The Chief of Conference Operation Information will support the smooth operation of the Financial Committee and oversee the informatization work of inter-departmental cooperation, while the Chief of Accounting System will be responsible for policy work related to corporate accounting.
Virtual Assets
South Korea

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