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Victims of voice phishing crimes involving virtual assets will be eligible for relief under a revised law set to take effect Oct. 1.

The Financial Services Commission announced Wednesday that it will hold a legislative notice period through Aug. 24 for a proposed amendment to the enforcement decree of the Special Act on Prevention of Damage from Telecommunications-Based Financial Fraud and Refund of Damages.

The use of virtual assets in telecommunications-based financial fraud, including voice phishing, has been on the rise. Because virtual assets were not previously covered under the asset categories eligible for victim relief, concerns grew that criminals could exploit the gap. A common example involves luring victims into installing fake apps that mimic overseas virtual asset applications, then demanding seed phrases for wallet recovery to steal entire virtual asset wallets.

In response, an amendment to the special act — expanding the scope of victim assets from cash to include virtual assets — will take effect Oct. 1.

The proposed enforcement decree amendment follows as a subsequent measure, specifying the form of refunds and the calculation standards for assets to be returned to victims.

Because virtual asset prices vary by type, unlike cash, the amendment sets separate rules for the form of refunded assets. If the asset to be refunded is cash, it will be paid to the victim in monetary units; if it is a virtual asset, payment will be made in units of type and quantity.

The amendment also establishes qualification requirements for institutions to be designated as dedicated agencies supporting the sale of virtual assets subject to victim refunds. Qualifying institutions must have the organizational structure and personnel necessary to carry out user protection and damage recovery support related to virtual assets, along with all other requirements the FSC deems necessary for performing the work.

"A legal foundation will be established to ensure that victim asset refunds can be carried out effectively even in cases of telecommunications-based financial fraud involving virtual assets," an FSC official said.

The amendment is expected to go through the required procedures following the legislative notice period and take effect on the same date as the revised law.


ehkim@heraldcorp.com