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South Korea's FSS Upgrades System to Prepare for Refunds to Virtual Asset Voice Phishing Victims

On August 10, according to SBS, South Korea's Financial Supervisory Service (FSS) has begun a comprehensive overhaul of its systems to address compensation for losses caused by financial fraud, including voice phishing involving virtual assets. The FSS launched the "Financial Fraud Loss Compensation System Improvement Project" on August 6. The project aims to reform the existing won-centered compensation calculation system to prepare for including virtual asset losses in compensation from October this year. The current system primarily calculates compensation amounts based on losses denominated in Korean won, but after the reform, it will adopt a compensation ratio and consider the type and quantity of the virtual assets involved. Additionally, the Korean won exchange value of virtual assets will be included in calculations when payments are suspended.

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