Grim Reaper of Yeouido: Seoul Southern District Prosecutors’ Office Inaugurates Joint Investigation Division for Virtual Asset Crimes

The Seoul Southern District Prosecutors’ Office has officially elevated the “Virtual Asset Crime Joint Investigation Task Force.” to a formal organization named the “Virtual Asset Crime Joint Investigation Division.” This move is designed to empower the new division to directly investigate and gather intelligence on virtual asset, related crimes, working in tandem with specialists seconded from various agencies, including the Prosecutors’ Office, the Financial Services Commission, the Financial Supervisory Service, the National Tax Service, the Korea Customs Service, and the Korea Exchange.

This decision was prompted by the ongoing expansion of the virtual asset market and the recent announcement that corporations will gradually be permitted to trade virtual assets, an environment that raises the likelihood of related crimes. As of November 2023, the average daily trading volume for virtual assets in Korea reached about KRW 14.9 trillion, comparable to the combined trading volume of KOSPI and KOSDAQ, underscoring the market’s substantial influence.

Both the Financial Services Commission and the Financial Supervisory Service have already launched dedicated departments for virtual assets, refining relevant laws and regulations. Furthermore, since July last year, when the Virtual Asset User Protection Act took effect, penalties for unfair trading practices have been clarified, and the legislation also allows exchanges to report and notify law enforcement of suspicious activity. These measures collectively strengthen the regulatory framework against such crimes.

Through the newly established Joint Investigation Division, the Seoul Southern District Prosecutors’ Office plans to concentrate its investigative efforts on corporate accounting and transaction data, unfair trading activities, concealed assets, and overseas funds transfers. Previously, while operating as a temporary Joint Investigation Unit, authorities actively pursued cases involving market manipulation and scam coins, ultimately indicting 74 individuals and arresting 25. Notable successes include the fraudulent “Podo Coin” case and the “Cheongdam-dong Stock Rich” case, where prosecutors secured the seizure and preservation of illicitly gained assets.

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