South Korea Financial Services Commission proposes decree changes to extend vishing loss refunds to virtual assets

The South Korea Financial Services Commission has published a revision proposal for the Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss, setting out how victims of telecommunications-based financial fraud involving virtual assets would receive relief. The proposal follows a March amendment to the Act that added virtual assets to the scope of eligible assets for loss refunds. It establishes refund rules for stolen virtual assets and creates a mechanism to convert refunded virtual assets into money for victims who do not use virtual asset services. Under the proposal, stolen money would be refunded in money, while stolen virtual assets would be refunded in the same type and quantity of virtual asset. If the asset originally stolen differs from the asset shown in the fraudulent account when the account freeze takes effect, the refund would be made in the form of the asset shown on that account at that time. Where recoverable assets are mixed, the money portion would be paid in monetary value and the virtual asset portion would be paid at market value at the time the freeze takes effect. The proposal also designates entities that may sell virtual assets subject to refund and convert them into money for victims with no virtual asset experience or no account with a virtual asset service provider. Those entities must meet organizational and human resource criteria linked to user protection and damage relief functions. The proposal is open for comment from July 15 to August 24, then will proceed through legislative review and approval. The revised decree is scheduled to take effect on October 1, 2026.