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BlogsDo Crypto & Stock Influencers (KOLs) Have to Disclose Their Holdings? What the New Korean Law Means for You
Crypto and stock influencers in Korea are increasingly hearing the term "mandatory asset disclosure" — and for good reason. The Democratic Party of Korea is preparing legislation that would require financial influencers (KOLs) who recommend stocks or crypto assets to publicly disclose the type and quantity of assets they hold, as well as any compensation they receive. What Does the Proposed Amendment Actually Require? The proposed amendment to the Virtual Asset User Protection Act centers on three key obligations. Anyone who repeatedly recommends crypto, stocks, or other financial investment products to a broad audience — or who receives compensation to encourage trading — must disclose the type and quantity of assets they hold, along with any remuneration received. Remuneration includes not just cash, but tokens, commissions, advertising fees, and other forms of payment. The penalties are what make this significant. This is not a minor administrative fine. Violations could be treated on par with market manipulation and front-running under the Capital Markets Act — in other words, a serious market order violation. Why Does This Matter Now, Before the Law Has Even Passed? Even before the legislation is enacted, the market has already shifted. Influencers who do not disclose their holdings are increasingly viewed with suspicion. In the digital asset space in particular, a common practice has come under scrutiny: receiving token allocations at below-market prices with short lock-up periods, then publishing investment recommendation content to followers. This structure is one of the primary targets of the proposed legislation. Once the law passes, past content could also become an issue. That is why now is the time to review how your channel operates. What KOLs and Trading Room Operators Need to Check Right Now The core question is: what do I need to disclose, and how much? 1. Disclosure of Holdings in Recommended Assets If you recommend a coin or stock, you need a clear standard for disclosing whether you hold it, the size of your position, and when you acquired it. Simply mentioning that you also hold the asset is not enough — the specific wording and timing of your disclosure matters. 2. Compensation Received from Projects or Exchanges If you receive cash, tokens, commissions, or advertising fees from any project or exchange, you need to document what form the payment takes, when it is received, and where and how it is disclosed in your content. Receiving compensation is not itself a problem. Concealing it is. 3. Paid Trading Rooms and Membership Services Even if you describe your service as "sharing information," you need to assess whether it could be characterized as investment advisory activity in substance. This includes checking whether you meet the registration requirements for a quasi-investment advisory business, and whether your terms of service and operating structure are aligned with the direction of the new regulations. If Any of the Following Apply to You, Consult a Lawyer Before Continuing You have received tokens or commissions from a project and recommended that asset to your audience. You operate a paid trading room or membership service where you share trade timing information. You have used language such as "principal guaranteed" or "guaranteed returns" in your content. You have received token allocations with short lock-up periods or favorable pricing, and subsequently published investment recommendation content. If any of these apply, the way you currently operate your channel may be a direct target of the proposed legislation. If You Run a Channel, Set Your Standards Now The question we hear most often from KOLs and influencers is this: "How much do I actually need to disclose? If I share too much, I expose my strategy. If I share too little, it looks like I'm hiding something." The answer is not to disclose everything. It is to establish a clear, consistent disclosure standard that fits your business model — before a problem arises. In actual virtual asset and capital markets cases, individuals who had defined their disclosure and documentation standards in advance and applied them consistently had significantly more room to defend themselves when investigations or complaints arose. Decent Law Firm's Virtual Asset Practice Group can help you identify where your current channel and content structure may carry legal exposure, establish an asset disclosure standard aligned with amendments to the Capital Markets Act and the Virtual Asset User Protection Act, draft disclosure language and disclaimers for conflict-of-interest situations, and review your terms of service and operating structure if you run a paid service. If you are already running a channel, or planning to launch KOL activity in earnest, get your standards in place now — before a complaint, investigation, or lawsuit forces the conversation. Contact Decent Law Firm's Virtual Asset Practice Group today.
2026-03-11 Naver Blog -
Blogs
AI Auto-Trading Investment Scams in Korea: How to Spot Them Before It's Too Late
Why AI Auto-Trading Scams Are on the Rise As tensions in the Middle East continue to unsettle global markets, fraudsters in Korea are seizing on the uncertainty — packaging it as a once-in-a-lifetime investment opportunity. At the center of it all is a surge in fake AI auto-trading scams. The pitch sounds convincing: a sophisticated AI system that analyzes the market in real time and generates consistent returns on your behalf. In reality, many of these operations are run by unlicensed companies with one goal — collecting as much money as possible before disappearing. Scammers typically start by flooding YouTube, social media, Telegram, and KakaoTalk group chats with investment seminars, free webinars, and screenshots of impressive-looking returns. They bundle so-called "expert trading signals" with automated trading software, and use headlines about the Middle East or global market volatility to push the narrative: "The people making money right now know something you don't." How the Scam Actually Works First contact usually comes through a YouTube video, a KakaoTalk open chat room, Telegram, or a free online seminar. The messaging is polished and persuasive — "AI auto-trading that responds to Middle East developments in real time," or "futures auto-trading built by a professional quant team." Screenshots of profits and glowing testimonials are shared repeatedly to build trust. Once you seem interested, they present a contract. It typically includes language like "the company will cover any losses in full" or "you can request repayment of your principal and returns at any time." They emphasize that because there's a signed agreement, everything is legally protected. What they don't tell you is that these contracts are almost never legally enforceable. Then comes the money transfer — and this is where things get telling. Instead of depositing into your own brokerage or futures account, you're asked to send funds to a corporate or personal account controlled by the company. After that, you're given access to a private app or website that shows your balance growing day by day. It looks real. It isn't. No actual trades are taking place. Up to this point, most victims have no reason to be suspicious. That's exactly the point. When you try to withdraw your money, the problems begin. Suddenly there are fees to pay — taxes, security deposits, processing charges. Each time you comply and send more money, new obstacles appear. Then, at some point, the messages stop. The website goes offline. The app stops working. The money is gone. Hydrogen and Drone Investment Scams Follow the Same Playbook The same structure shows up in a different costume. "Invest in a hydrogen energy company and receive fixed monthly dividends." "Back a drone logistics startup and earn steady rental income." The framing changes, but the mechanics don't. High-risk, early-stage ventures are presented as if they were as safe as a savings account or government bond. Most of these companies have no license or registration with Korean financial regulators. The "dividends" being paid out don't come from actual business revenue — they come from money sent in by newer investors. That's the definition of a Ponzi scheme, and it operates on the same foundation as the guaranteed-return unlicensed fundraising scams described above. Warning Signs to Watch For You're asked to send money to a company account rather than your own brokerage or futures account. The pitch leads with guaranteed principal and fixed monthly returns, while any mention of risk or potential losses is absent or vague. You're shown screenshots of profits and video testimonials, but there's no clear explanation of how the strategy actually works. A cutting-edge technology is name-dropped — AI, hydrogen, drones — but you can't independently verify the business operations or financials. If any of these apply, stop and consult a professional before going any further. If You've Already Sent Money, Your First Move Is Evidence The moment you suspect something is wrong, start preserving everything. Save your contracts and promotional materials, transaction records, screenshots of the app or website, and all Telegram or text message conversations. Do it immediately — these platforms shut down fast, and once they do, the evidence disappears with them. Cases like these typically involve multiple overlapping legal violations: criminal fraud, the Act on the Aggravated Punishment of Specific Economic Crimes, the Act on the Regulation of Similar Receiving of Funds, and unregistered investment advisory or discretionary investment management under the Financial Investment Services and Capital Markets Act. Untangling all of this on your own is extremely difficult. Decent Law Firm's criminal litigation team has handled cases involving fake AI auto-trading schemes, unlicensed fundraising operations, and investment fraud of all kinds. We work through the evidence with you and map out your options — both criminal and civil. If you suspect you've been targeted, reach out to us now.
2026-03-09 Naver Blog -
Blogs
Inheriting Crypto on Korean Exchanges: What You Need to Know
As crypto ownership continues to grow in Korea, so do cases where someone passes away still holding digital assets. The first question families almost always ask is the same: "Can we actually claim the crypto our loved one left behind on the exchange?" The short answer is yes. The Korean National Tax Service treats virtual assets as part of a deceased person's taxable estate, and since 2022, the Inheritance and Gift Tax Act has included explicit provisions for valuing crypto assets. Coins held on domestic exchanges like Upbit and Bithumb are legally inheritable — heirs can claim them through the proper succession process. That said, knowing you're entitled to something and actually getting it are two very different things. What Counts as Inheritable Crypto It's not just coins sitting in an exchange wallet. The deceased may have held digital assets in more forms than you'd expect: Coins held in accounts on Korean exchanges such as Upbit or Bithumb Major cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH) Assets currently staked or locked in yield products Open or pending orders on exchange accounts Holdings spread across multiple exchanges The first step is figuring out where the deceased held their assets and in what form — and that alone can be a challenge. Why Korean Exchange Inheritance Is More Complicated Than It Sounds Korean exchange accounts are registered under the account holder's identity and built around personal authentication. By design, no one else can log in or withdraw funds — not even a family member. Upbit and Bithumb operate under different companies and handle inheritance requests differently. What works at one exchange may not fly at the other. Things get significantly harder when any of the following apply: You didn't know the account existed or what was in it There are multiple heirs or the inheritance structure is disputed You can't access the phone number or authentication method tied to the account The deceased held assets across several different exchanges Why This Is Hard to Handle on Your Own Even when heirs contact exchanges directly, they often run into vague guidance, shifting requirements, and delays that stretch on for weeks or months. If co-heirs aren't cooperating, or you can't even confirm whether an account exists, it can feel impossible to move forward. And while time slips away, legal deadlines don't wait. Claiming inherited crypto isn't a customer service issue — it's a legal matter. You need to formally establish your standing as an heir before any exchange will release the assets. The virtual asset team at Decent Law Firm has handled inheritance cases across Upbit, Bithumb, Coinone, and other Korean exchanges firsthand. If you're trying to recover crypto a family member left behind, reach out — we'll walk you through it from start to finish.
2026-03-06 Naver Blog -
Blogs
Medical Device Rebates Under Police Crackdown: Why You Need to Act Now
Korea's National Investigation Headquarters has announced a dedicated task force — the "Livelihood Crime Disruption TF" — running from March through October 2026, with medical and pharmaceutical rebates explicitly listed as a priority target. This isn't a routine audit. The crackdown combines intelligence gathering with inter-agency coordination, meaning investigations can be triggered by internal whistleblowers, financial data analysis, or tips from partner agencies. Medical device manufacturers, importers, distributors, hospitals, clinics, and individual practitioners are all within scope. What Can Be Treated as an Illegal Rebate If a healthcare provider receives money, equipment, supplies, or any other benefit from a medical device company — tied to adopting, using, or continuing to purchase a specific product — that can constitute an illegal rebate under Korean law. Courts have already ruled against companies that supplied hospitals with fixtures, renovation costs, or equipment, finding these to be disguised sales incentives. Labeling payments as "conference sponsorships," "consulting fees," or "research grants" doesn't provide cover if the amounts track the volume or revenue from a specific device. The line between legitimate marketing and an illegal rebate comes down to the contract structure, payment records, and internal approval flows — and that analysis needs to happen before investigators come knocking. Early Response Is Everything In this crackdown, search warrants and witness summons are expected to roll out simultaneously through regional investigation units. The materials investigators will focus on include internal emails and messaging records, accounting books and expense reports, and consulting or service contracts. There are three things every company should get in order right now: Establish your official position — Determine the company's consistent explanation and response narrative before anyone is questioned. Define your document perimeter — Decide which records to preserve, which to produce, and in what order. Align internal statements — Make sure employees aren't giving contradictory accounts to investigators. Missteps at this stage can significantly increase criminal exposure and the severity of any administrative sanctions that follow. Why Internal Compliance Needs Attention Right Now The police have raised the whistleblower reward for rebate-related offenses to up to 500 million KRW. The risk of an investigation being triggered by someone inside your own organization has never been higher. Korea's dual-liability rule means both the party that gives a rebate and the party that receives it face criminal exposure. This isn't a problem that sits with just one side of the transaction — the entire structure needs to be reviewed. Two things matter most for compliance right now: Audit your past and current business practices and clean up any arrangements that could raise red flags Build a "explainable expenditure structure" through clear policies and staff training — one that holds up under scrutiny Once an investigation starts, your options narrow fast. The time to work through potential vulnerabilities with a medical device law attorney is now, before anyone shows up at your door. Decent Law Firm — Medical Device Law Practice Medical device rebate cases sit at the intersection of criminal liability and administrative sanctions — they require both tracks to be handled at once. Our team has handled cases across the full spectrum: attending search and seizure operations, sitting in on suspect and witness interviews, coordinating internal statements, and conducting compliance reviews. The strongest defense is the one you build before you need it.
2026-03-04 Naver Blog -
Blogs
If You Need Assistance With a Voice Phishing (Borrowed Account) Victim Relief Application
Why Is Recovery So Difficult in Borrowed-Account Voice Phishing Cases? Telecommunications financial fraud (commonly known as “voice phishing”) typically involves transferring funds through bank accounts opened under third parties’ names (so-called fraud-use accounts). Money transferred by the victim is quickly split across multiple accounts. Some funds are withdrawn in cash or converted into virtual assets, making tracing practically impossible. If the financial institution’s payment suspension procedure is delayed, meaningful recovery becomes extremely difficult. In organized schemes, roles are divided among recruiters, cash couriers, and managers, which makes identifying legally responsible parties time-consuming. Accordingly, borrowed-account voice phishing cases are not simple financial incidents. They are serious criminal matters requiring simultaneous consideration of both criminal and civil response. Immediate Actions After the Incident Immediately apply for victim relief through the financial institution after the transfer Report to the police and initiate a formal investigation Secure account flow data and organize call and message records If response is delayed at this stage, funds will rapidly dissipate. This matter must never be taken lightly. Even a few hours can determine the outcome. After payment suspension, a claim extinguishment procedure is conducted by the financial institution and the Financial Supervisory Service, followed by a decision regarding victim refund distribution. However, if an additional victim relief application is not submitted within two months from the public notice of the claim extinguishment procedure, the victim may lose eligibility for the refund (Article 6(1) of the Act on the Prevention of Loss Caused by Telecommunications-Based Financial Fraud and Refund for Loss). Borrowed-account voice phishing cases require not only prompt initial measures but also systematic follow-up management. Why Legal Assistance Is Necessary Victims must simultaneously manage multiple response channels, including the Financial Supervisory Service, police authorities, and commercial banks. Filing a simple report is not sufficient. If the perpetrator can be identified, a civil claim for damages should be pursued in parallel. If a joint offender structure is revealed, strategies to assert joint tort liability must also be considered. Where the principal offender cannot be apprehended, it may be necessary to examine whether the account holder who provided access media, while foreseeing the fraudulent use, may bear liability for damages under tort law. However, proving the account holder’s foreseeability is essential, and liability may be limited if contributory negligence of the victim is recognized. Careful case-by-case legal analysis is therefore required. Providing practical direction to clients facing such distressing circumstances is the role of legal counsel. Attempting to navigate these procedures alone, particularly in an emotionally shaken state, can be overwhelming and complex.
2026-02-26 Naver Blog -
Blogs
Emergency Arrest in Korea: What Actually Happens in the First 48 Hours
The moment you're placed under emergency arrest in Korea, the clock starts. And it doesn't stop. Under Article 200-4 of the Korean Code of Criminal Procedure, investigators have exactly 48 hours from the time of arrest to apply for a detention warrant — or they must release you immediately. Every decision made inside that window has consequences that follow the case long after. Stage 1 · Immediate Arrest and Transfer to the Detention Facility At the moment of arrest, the arresting officer is required to inform you of your identity, the grounds for arrest, your right to retain a lawyer, and your right to remain silent. You'll then be transported to the nearest police station and placed in a holding cell. Once inside, the intake process begins: identity verification, personal belongings search and storage, and formal admission into custody. Two things matter most at this stage: Whether you can contact a family member When and how you can meet with a lawyer This is the single most critical moment to get legal counsel involved. In practice, the first attorney visit and formal retention often happen within hours of arrival at the holding facility — and for good reason. Stage 2 · Waiting in Custody and the First Interrogation At some point during the same day or the next, you'll be brought out for your first formal interrogation by investigators. In this compressed window, police are working fast — pulling together your statements, seized materials, and witness accounts to build a picture of whether charges are warranted and whether continued detention is necessary. What makes this stage particularly consequential is that the written interrogation record produced here often feeds directly into the detention warrant application and the subsequent warrant hearing before a judge. How much you say, what you say, and where you invoke your right to silence can significantly shape the direction of the entire case. Stage 3 · The Detention Warrant Decision If police determine that continued detention is necessary, they must submit a detention warrant request to prosecutors within 48 hours of the arrest. Prosecutors review the request and decide whether to seek the warrant from a judge. Miss the deadline, or fail to secure the warrant — and the suspect must be released immediately, no exceptions. During this window, the two sides are moving in opposite directions: Investigators are assembling evidence of the alleged offense and building the case for why detention is necessary Defense counsel is gathering evidence of stable ties to the community — residence, employment, family — and arguing that flight risk and evidence tampering concerns don't hold up Stage 4 · The Warrant Review Hearing and What Comes Next If prosecutors apply for a detention warrant, the suspect is brought before a judge for a warrant review hearing — known in Korea as the yeongjangsiljilsimsa. The judge evaluates three things: how well the alleged offense is substantiated, whether there's a genuine risk of flight or evidence tampering, and whether the investigation can reasonably proceed without detention. The outcome falls into one of three categories: Warrant granted → The suspect is remanded into custody at a correctional facility Warrant denied → Immediate release; investigation continues without detention No warrant filed within 48 hours → Immediate release, no further action required at that stage Decent Law Firm — Criminal Defense Practice The first 48 hours after an emergency arrest move fast, and the decisions made during that window — what to say, what not to say, what to prepare — shape everything that follows. Our criminal defense team covers the full sequence: from the first attorney visit at the holding facility, through the interrogation stage, to the warrant hearing before the judge. We focus on getting in front of unfavorable outcomes before they solidify, and staying in your corner until the end.
2026-02-25 Naver Blog
