Inclusion of Coins in 'Private Interest Registration' Targets
Full Reporting Required Unlike Cash and Stocks
Active Lawmakers Also Required to Report Through Special Provisions
The National Assembly's Special Committee on Political Reform held a bill review subcommittee meeting and unanimously passed a bill by both ruling and opposition parties to include virtual assets in the property that members of the National Assembly must register with the National Assembly Ethics Review Advisory Committee.
On the morning of the 22nd, the Special Committee on Political Reform reviewed three amendment bills to the National Assembly Act containing this provision at the first bill review subcommittee and passed them as the committee's alternative without any objections. The Special Committee plans to hold a plenary session in the afternoon to pass the amendment and finalize the bill at the plenary session on the 25th.
Recently, controversy arose over a conflict of interest as Kim Nam-guk, a member of the Democratic Party of Korea, was suspected of investing in and holding a large amount of coins and jointly proposed a bill to defer taxation on virtual assets. The amendment aims to prevent potential conflicts of interest by including virtual assets in the 'private interest registration' subject for members of the National Assembly under current law.
According to the agreed content on this day, virtual assets owned by the member, spouse, or direct ascendants or descendants exceeding a ratio or amount prescribed by National Assembly rules, along with the list of issuers, will be set as the scope and subject of registration (Article 32, Paragraph 2, Subparagraph 2 of the National Assembly Act). Virtual assets refer to those defined in Article 2, Paragraph 3 of the Act on Reporting and Using Specified Financial Transaction Information.
Currently, cash or stocks and other assets must be registered if held in amounts exceeding 10 million KRW, including those owned by spouses or direct ascendants or descendants, but for virtual assets, the entire amount owned must be reported. Jeon Jae-su, Chair of the first subcommittee of the Special Committee on Political Reform, explained to reporters after the subcommittee meeting, "Because virtual assets have such large price fluctuations, even if you acquire and hold just 1 KRW worth of virtual assets separately from other assets, you must report all of it."
The bill's application target is basically limited to the 22 members to be elected, but through special provisions in the supplementary rules, it can include current members of the 21st National Assembly. According to the special provisions, 21st National Assembly members must register the status and changes of virtual assets 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 must review potential conflicts of interest and submit its review opinions to the Speaker of the National Assembly, the members, and the representatives of the affiliated negotiation groups by July 31.
Choi Hyung-doo, a member of the Special Committee on Political Reform from the People Power Party, regarding the allegations of virtual asset investment by member Kim, stated, "From now on, we will do our best to ensure there are no suspicions whatsoever," and added, "We will advance the new technology of virtual assets, encourage innovators together, protect good-faith investors, and firmly eliminate any attempts to hijack innovation efforts through speculative transactions."
Meanwhile, on the afternoon of the same day, the National Assembly's Public Administration and Security Committee will also hold the first bill review subcommittee meeting to review and process the 'Public Officials Ethics Act Amendment' that includes virtual assets in the property declaration subject for public officials.
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