"Must Disclose Even if Virtual Assets Are Worth 0 Won"…Virtual Assets Included in Public Officials' Asset Disclosure (Comprehensive)

Public Administration Committee Bill Subcommittee Reviews Public Officials Ethics Act Amendment
Political Reform Special Committee Bill Subcommittee Also Reviews Conflict of Interest Related National Assembly Act

Virtual assets have been included in the disclosure requirements for public officials' property. Even if they hold just 1 won, both the amount of virtual assets held and transaction details will be subject to disclosure. The Public Officials Ethics Act, which mandates the disclosure of virtual asset holdings, is expected to be applied from next year after a plenary session on the 25th.

On the 22nd, the Legislation Review Subcommittee 1 of the National Assembly's Public Administration and Security Committee reviewed and approved an amendment to the Public Officials Ethics Act to include virtual assets in the property declaration requirements for public officials. The need for transparent disclosure of virtual assets gained momentum following controversy over a large coin investment by independent lawmaker Kim Nam-guk. The Public Administration and Security Committee plans to finalize the legislative process through a full committee meeting on the 24th and a plenary session on the 25th.

Kim Gyo-heung, chairman of the bill subcommittee and a member of the Democratic Party of Korea, explained to reporters after the review, "We decided to require full registration of all virtual assets held by public officials, without setting a minimum threshold." He added that the valuation methods for assets will be determined later through enforcement ordinances and other regulations.

According to the version passed by the subcommittee, unlike other assets, no minimum threshold will be applied to virtual assets. Under the current Public Officials Ethics Act, a minimum value of 10 million won is set for cash, stocks, and bonds, and 5 million won for gold, jewelry, and membership rights. The exceptional imposition of strict disclosure obligations on virtual assets reflects the significant volatility in their value.

This amendment is considered strong compared to previously submitted bills. Most of the Public Officials Ethics Act amendment proposals submitted to the National Assembly set the reporting threshold for virtual assets at around 10 million won (with some exceptions such as 5 million won by Kwon Seong-dong of the People Power Party and 1 million won by Yoon Doo-hyun of the People Power Party). It appears that the minimum threshold provision was removed during the National Assembly's review process to include all transaction details.

Regarding concerns about effectiveness, Kim Gyo-heung said, "It is difficult to disclose transactions with overseas parties or private individual-to-individual trades, but those conducted through exchanges will all be revealed." He also stated that transaction details of virtual assets will be included in the reporting requirements. Kim said, "Even if someone held virtual assets this year and traded them down to zero won, they must still be included in the report," adding, "Transaction records must be registered." The amendment also includes provisions allowing the collection of related data from virtual asset-related businesses.

Regarding blind trusts, it was decided to discuss further later, considering that trust companies currently cannot manage coin trusts. However, those engaged in virtual asset-related work are prohibited from holding virtual assets.

Earlier, the Special Committee on Political Reform unanimously approved a bill in the bill review subcommittee to include virtual assets in the property that members of the National Assembly must register with the National Assembly Ethics Review Advisory Committee.

The National Assembly Act passed by the Special Committee on Political Reform includes virtual assets in the registration of private interests for lawmakers. This amendment also requires reporting even if the virtual assets held are worth as little as 1 won, reflecting the volatile nature of virtual asset values.

The amendment requires not only the 22nd National Assembly members but also includes special provisions to check for conflicts of interest among current lawmakers. Accordingly, current lawmakers must register their virtual asset holdings and changes acquired and held from the start of their term until the 31st of this month with the Ethics Review Advisory Committee by the 30th of next month. The advisory committee will review potential conflicts of interest and submit its opinions to the Speaker of the National Assembly, the lawmakers, and the representatives of their affiliated negotiation groups by July 31.

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