The Anti-Corruption and Civil Rights Commission Conducts Compliance Inspection on Public Officials' Virtual Asset Holdings and Code of Conduct

Concerns Over Virtual Asset Speculation by Public Officials Using Internal Information... Conflict of Interest Prevention Regulations Established

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[Sejong=Asia Economy Reporter Moon Chaeseok] The Anti-Corruption and Civil Rights Commission announced that starting from the 27th, it will conduct an operational inspection of conflict of interest prevention systems related to coin investments by virtual asset-related personnel in central government ministries and financial public institutions. This inspection was prompted by concerns that some public officials might exploit internal information related to their duties to engage in virtual asset speculation, as virtual asset transactions have recently increased.

This inspection will focus on whether the institutions handle virtual asset-related tasks and whether their codes of conduct reflect relevant regulations. For related institutions, the focus will be on ▲designation of departments and positions related to virtual assets ▲standards for restricting virtual asset transactions ▲establishment of reporting grounds for holding virtual assets ▲measures by institution heads such as job exclusion to prevent conflicts of interest.

Previously, in February 2018, the Commission notified central government ministries and public institutions to revise their institutional codes of conduct to include virtual asset-related provisions, prohibiting investments using internal information related to duties and requiring public officials in departments and positions related to such duties to report their holdings. According to Article 12 of the "Public Officials' Code of Conduct," public officials are prohibited from using information obtained during their duties to engage in property transactions or investments related to securities, real estate, etc., or to provide such information to others to assist in property transactions or investments.

From May 19 next year, the "Conflict of Interest Prevention Act for Public Officials" will be enforced, applying the "Reporting Regulations for Transactions by Persons Related to Duties" to virtual assets as well. Accordingly, public officials who use confidential information related to virtual asset duties or undisclosed information of their affiliated institutions will be punished under the "Regulations Prohibiting Use of Confidential Information Related to Duties."

Han Samseok, Director of the Anti-Corruption Bureau at the Commission, stated, "Considering the expansion of related institutions due to the amendment of the 'Income Tax Act' and virtual asset taxation starting next year, we will continue to promote inspections of related systems to prevent blind spots in conflicts of interest related to public officials' virtual assets."

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