Korean Financial Services Commission (FSC) Chairman Kim Joo-hyun today in a speech outlined a broad strategy to leverage the regulator's Financial Intelligence Unit (FIU) against illegal financial activities tied to virtual assets.

The focus will be on crimes like drugs and gambling that directly impact people's lives.

Kim stated:

"In the future, we will share and strategically analyse suspicious cases of crime with core law enforcement agencies such as the prosecution and the police."

The plan aims to eradicate such crimes and maximize the recovery of criminal proceeds through virtual assets.

The FSC will intensify reporting, examination, and inspection of virtual asset service providers.

As part of this enhanced bid against money laundering, major shareholder reviews will be reinforced to block questionable business entries.

Focus on Anti-Money Laundering

Kim emphasized anti-money laundering as the primary focus for financial companies.

The FSC will purportedly provide policy support, encouraging periodic capability evaluations for companies to enhance their anti-money laundering measures.

Speaking at the '17th Anti-Money Laundering Day' ceremony in Seoul, Kim highlighted the crucial role of financial institutions.

Attendees, including Deputy Prosecutor General Shim Woo-jung, learned about the Korean Supreme Prosecutor's Office's success in recovering criminal proceeds and investigating money laundering crimes.

The provided data led to the collection and preservation of approximately 1.78 trillion won (about $1.3 billion USD) worth of property this year, with over 2,200 people implicated in money laundering crimes.

Crypto in South Korea

Korea, a major player in the financial landscape, has been actively involved in cryptocurrency.

In November this year, the Democratic Party of Korea specifically mandated disclosure of digital asset holdings by prospective candidates ahead of the 2024 general election.

Ostensibly, this was to align with a broader initiative to showcase candidates' "high moral standards" and promote transparency.