Financial Supervisory Service’s 2026 Work Plan Briefing
"Reviewing whether Bithumb can be held liable"
"Special judicial police investigative authority agreed with the Financial Services Commission"
Lee Chanjin, Governor of the Financial Supervisory Service, stated on the 9th that, in relation to the "Bitcoin mispayment" incident at virtual asset exchange Bithumb, the authority will immediately switch to an on-site inspection if any violation is found. He added that they are also reviewing whether Bithumb can be held responsible.
Lee Chanjin, governor of the Financial Supervisory Service, is taking notes while listening to reporters' questions after announcing the 2026 work plan at the Financial Supervisory Service in Yeouido, Yeongdeungpo-gu, Seoul on the 9th. Yonhap News
On the Bithumb incident, he points out that "structural vulnerabilities have been exposed"
Governor Lee made these remarks while presenting the "2026 Financial Supervisory Service Work Plan" at the main building in Yeouido, Seoul, on the morning of the 9th. He said, "In relation to the Bithumb incident, we are examining the adequacy of its internal control operations, and if we discover any violations, we plan to switch to an on-site inspection."
This follows an incident on the 6th in which Bithumb, while paying out prizes for its own promotional event, mistakenly entered the unit as "Bitcoin" instead of "won," resulting in a situation where a total of 620,000 won was mispaid as 620,000 Bitcoins. The financial authorities held an emergency meeting on the morning of the 7th, the following day, and carried out an on-site inspection.
Regarding whether Bithumb can be held liable, Governor Lee said, "The working-level department is conducting a thorough review. I cannot offer a personal opinion on whether there are any parts that violate the Act on the Protection of Virtual Asset Users, but there are some aspects that require judgment." He also emphasized his willingness to support the second-phase legislation, saying, "To protect users in the virtual asset market, including resolving the structural vulnerabilities in systems revealed by the Bithumb incident and others, we are preparing for the effective implementation of the second-phase virtual asset bill."
He cited a shortage in staffing structure as a factor that made prior prevention difficult. Governor Lee explained, "The number of personnel in charge of virtual assets at the Financial Supervisory Service is fewer than 20, and most of them are currently focused on the second phase of virtual asset legislation, so it is difficult for prior prevention to function." He added, "In terms of consumer protection, we can say there was some functioning, in that, after the Bithumb incident, the on-site response that should originally have taken place today (the 9th, Monday) was actually carried out immediately on the morning of the 7th."
In addition, regarding virtual asset exchange-traded funds (ETFs) requested by asset management companies, he said, "I am not in a position to speak carelessly about ETF-related policy," but added, "If safety is not secured, I believe the public cannot engage in financial transactions."
Lee Chanjin, governor of the Financial Supervisory Service, is announcing the 2026 work plan at the Financial Supervisory Service office in Yeouido, Yeongdeungpo-gu, Seoul, on the 9th. Yonhap News
Special judicial police investigative authority agreed with the Financial Services Commission
Governor Lee confirmed that the Financial Supervisory Service has completed consultations with the Financial Services Commission on granting investigative authority to the special judicial police (special judicial police officers) for the capital market and on introducing special judicial police for illegal private financing. Investigations based on the authority’s own detection can proceed through the Financial Services Commission’s Investigation Review Committee and are conducted under the direction of prosecutors in accordance with the Criminal Procedure Act. Internal financial information can be accessed through court-issued warrants.
He drew a clear line regarding concerns that the absence of an internal investigation review committee within the Financial Supervisory Service could lead to information leaks. Governor Lee said, "The key is to reach a conclusion within 48 hours and promptly preserve evidence," and added, "Because we hold information that must not be leaked, our original position was that the discussions should be held at the Financial Supervisory Service, and whether the main body is the Financial Services Commission’s Investigation Review Committee is not important." He went on to say, "These concerns and matters related to staffing will be addressed."
He also indicated that the scope of special judicial police could be expanded if the public demands it. Governor Lee said, "If the special judicial police system for illegal private financing becomes established, if the need for special judicial police arises in other areas, and if the Financial Supervisory Service builds sufficient trust, special judicial police could be introduced in other areas such as insurance fraud."
Inspection launched into MBK... Accounting review cycle shortened from 20 years to 10 years
He also confirmed that the Financial Supervisory Service has launched an inspection into MBK Partners, where additional suspicious unfair trading was detected in the process of acquiring Homeplus. This is separate from the referral to the prosecution in April last year of suspicions of fraudulent unfair trading, including the issuance of large-scale asset-backed short-term bonds (ABSTBs), even after MBK Partners’ management became aware of a downgrade in the company’s credit rating. Governor Lee explained, "We are carefully examining various suspicions and are bringing any violations to the Financial Supervisory Service’s Sanctions Review Committee," adding, "We will proceed after fully hearing the views of the parties involved and reviewing the relevant legal principles."
Lee Chanjin, governor of the Financial Supervisory Service, is announcing the 2026 work plan at the Financial Supervisory Service in Yeouido, Yeongdeungpo-gu, Seoul, on the 9th. Yonhap News Agency
He further explained that the decision in this year’s work plan to shorten the accounting review cycle for major listed companies from 20 years to 10 years reflects the staffing situation of the Financial Supervisory Service’s accounting review division. He said, "Accounting review is the most important tool for delisting underperforming companies from KOSDAQ," and added, "We shortened the review period to eradicate unfair trading in the capital market, but we also took into account the reality that we have only about 60 personnel."
Regarding integrated investment management accounts (IMAs), for which additional designations are currently being processed by the Financial Services Commission, he cautiously stated that private equity funds (PE) should be excluded. Governor Lee said, "I do not have decision-making authority over licensing, but I have been conveying the view that PE should be excluded," and added, "We are taking care to ensure that no problems arise due to our sanctions." At the end of last year, eight years after the system was introduced, the financial authorities designated Korea Investment & Securities and Mirae Asset Securities as IMA providers.
Governor Lee explained that there is no conflict of interest regarding the venture private investment association bonds disclosed in last month’s asset disclosure. He said, "A venture private investment association typically has about 10 to 15 investment targets, and only about 2 to 3 percent of them survive and go public, and the period until listing is quite long, so there is little room for conflicts of interest," adding, "I have been making these bond investments continuously for 7 to 8 years for income tax deduction purposes."
Regarding the purchase of domestic stock index ETFs with a 200 million won down payment from the sale of an apartment unit he owned in Umyeon-dong, Seocho-gu, Seoul, in October last year, he said he would buy more ETFs even after receiving the remaining balance. He said, "I will buy them with my portion of the remaining payment, excluding my wife's share," adding, "Looking at when I first invested, the rate of return has been quite high and has been helpful."
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