National Assembly Public Administration Committee Passes 'Kim Nam-guk Prevention Act'... Lawmakers' Virtual Asset Property Reporting

Jeonse Fraud Victims Also Benefit from Local Tax Reduction Bill Passed

The so-called 'Kim Nam-guk Prevention Act,' which mandates the registration of virtual asset holdings for members of the National Assembly and others, has passed the National Assembly's standing committee.

[Image source=Yonhap News]

On the 24th, the National Assembly's Administrative Safety Committee held a plenary meeting and approved an amendment to the Public Officials Ethics Act to include virtual assets in the property declaration and disclosure requirements for high-ranking public officials, including members of the National Assembly.

Under the current Public Officials Ethics Act, virtual assets such as coins are completely excluded from the property declaration requirements, unlike cash, stocks, bonds, gold, jewelry, antiques, and membership rights. The legislative process accelerated after the controversy over independent lawmaker Kim Nam-guk, who left the Democratic Party and was involved in a large-scale coin investment scandal, which expanded into allegations of legislative lobbying and questions about lawmakers' morality.

The amendment requires lawmakers and high-ranking public officials to register all virtual assets regardless of the amount. There is no minimum threshold for the value of virtual assets that must be registered. The valuation method will be separately determined by a presidential decree, considering the highly volatile nature of virtual assets.

Additionally, the amendment includes provisions restricting the holding of virtual assets by public officials who acquire information or exercise influence over virtual assets, as well as their related parties.

The law is scheduled to take effect in early December this year. Those subject to the law must report virtual asset transactions conducted after January 1 of this year.

However, there are criticisms that property declarations will only be made in February next year, so the current status of lawmakers' virtual asset holdings cannot be immediately confirmed. The ruling and opposition parties have agreed to enact additional legislation to allow the disclosure of virtual asset holdings of lawmakers and high-ranking public officials such as ministers and vice ministers before the law takes effect.

Meanwhile, an amendment to the Local Tax Special Cases Act, which provides local tax reductions when victims of jeonse fraud purchase the affected housing, also passed the Administrative Safety Committee plenary meeting on the same day.

Acquisition tax will be reduced up to a limit of 2 million won, and property tax will be reduced by 50% for houses 60㎡ or smaller and by 25% for houses larger than 60㎡ for three years.

The amendment to the Gangwon Special Self-Governing Province Act, which includes various special cases for the development of the tourism industry and revitalization of the regional economy, and the amendment to the Jeju Special Self-Governing Province Establishment and International Free City Creation Special Act, which provides a legal basis for Jeju to establish autonomous cities or counties within its jurisdiction through resident referendums, also passed.