[2021 National Audit] Go Seung-beom: "I will look into whether Dunamu's business practices have any issues"

Financial Services Commission Chairman Ko Seung-beom attended the National Assembly's Public Administration and Security Committee's audit of the Financial Services Commission held at the National Assembly on the 6th and is reporting on his duties. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Ji-hwan] Ko Seung-beom, Chairman of the Financial Services Commission, stated that he will examine whether Dunamu, the operator of Upbit, has any issues related to investor protection in its business practices such as the unlisted stock trading service and the monopoly on virtual asset market fees.

At the National Assembly's Political Affairs Committee audit on the same day, Ko responded to a question from Min Byung-duk, a member of the Democratic Party of Korea, who asked, "Dunamu monopolizes the unlisted stock trading service. Please explain the measures to prevent this monopoly." Ko emphasized, "It seems necessary to verify whether the existing business practices pose any problems for investor protection," and added, "We will conduct a thorough review."

On that day, Chairman Ko also said he would closely examine the listing and delisting processes of coins on virtual asset (cryptocurrency) exchanges. According to Min Byung-duk, among the total 298 coins listed on Upbit, the largest virtual asset exchange in Korea, until June, 145 coins, accounting for 48% of the total, were delisted.

Min pointed out, "Upbit received 4 trillion won in fees from listing 298 coins. The fees earned from delisted coins alone amounted to 31.4 billion won, and while Upbit gained fee profits, the coin holders who ultimately possessed those coins suffered enormous losses. Isn't there a lack of criteria regarding the conditions for listing and delisting?"

In response, Chairman Ko said, "I believe user damage should be minimized during the coin listing and delisting process," and added, "Since the Virtual Asset Business Act is currently being discussed in the National Assembly regarding virtual asset listings and delistings, we will actively participate and consider the matter."

Additionally, the audit session raised issues about measures to prevent virtual asset voice phishing. Yoon Kwan-seok, a member of the Democratic Party of Korea, urged the preparation of related measures, stating, "The most difficult point in preventing virtual asset voice phishing is that virtual asset exchanges are not subject to the Act on the Prevention of Telecommunications Fraud Damage Compensation, so there is a lack of legal grounds."

Chairman Ko said, "It seems problematic because virtual asset exchanges are not classified as financial companies," and added, "Since the National Assembly is currently discussing the virtual asset operator system, we will consider whether the Act on the Prevention of Telecommunications Fraud Damage Compensation can be applied to virtual asset operators as well as financial companies in the future."

This content was produced with the assistance of AI translation services.