"Missed Again"...The Loophole of 'Virtual Assets' in Public Officials' Asset Disclosure

Stocks and Cash Must Be Reported, but Virtual Assets Are Not
Related Law Proposed in National Assembly but Has Not Been Discussed

[Image source=Yonhap News]

[Asia Economy Reporter Naju-seok] Despite concerns that virtual assets could become a 'loophole' in public officials' asset disclosures, related laws have yet to be amended, leaving a legislative gap. Although related bills have been submitted to the National Assembly, it has been confirmed that proper discussions have not even taken place.

On the 31st, government ministries and public institutions simultaneously disclosed the assets of high-ranking public officials. However, virtual currencies were excluded from the disclosed information. The Public Officials Ethics Act stipulates that cash over 10 million won, deposits, stocks, bonds, gold and gold-related products, jewelry, antiques, and membership rights must be reported. However, virtual assets are excluded from the reporting requirements due to the lack of relevant legal grounds.

Considering that virtual assets are already widely used as a means of accumulating wealth, the related laws are not keeping pace with reality. Moreover, there are concerns that this could be exploited to evade asset reporting.

Several related bills have been proposed since former lawmaker Jeong Dong-young introduced an amendment to the Public Officials Ethics Act in 2018. In the 21st National Assembly, Democratic Party lawmakers Shin Young-dae, Lee Yong-woo, Min Hyung-bae, and People Power Party lawmaker Yoo Kyung-joon each proposed amendments to the Public Officials Ethics Act. These laws generally include provisions that virtual assets worth over 10 million won should be included in asset disclosures. Most of these bills have remained dormant without discussion in standing committees.

Currently, even if virtual assets are reported, the disclosed information is not publicly verified. Lawmaker Shin, who first raised this issue in the current National Assembly, included his virtual asset holdings in his asset disclosure this year as well as last year, but it was not included in the 'National Assembly Gazette.' He explained in a call, "I considered it a reportable item and declared it as part of my assets, but it was included only as a reference and not published in the Gazette." He added, "Since virtual assets are already widely recognized as part of the public's wealth, it is necessary to include them in the disclosure requirements."

Lawmaker Yoo, who also proposed related legislation, stated, "Many people invest in virtual assets and the transaction volume is significant, so excluding them from disclosure is unfair," and emphasized, "Legal amendments are necessary."

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