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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
Illegal Employment of Foreign Nationals: The One Thing You Must Do to Avoid Serious Penalties
Crackdowns on Illegal Employment of Foreign Nationals Are Not Mere Administrative Issues Many people mistakenly believe that crackdowns on the illegal employment of foreign nationals are simply administrative procedures. In reality, these cases involve violations of the Immigration Control Act and may result in significant legal liability not only for the foreign national involved, but also for the employer. Foreign nationals may become subject to enforcement actions if they engage in employment activities without a visa status permitting employment, or if they engage in activities beyond the scope of their authorized visa status. In such cases, a deportation order may be issued under Article 46(1)(8) of the Immigration Control Act, and reentry into Korea may be restricted for a certain period following deportation pursuant to Article 11(1)(6) of the same Act. In addition, if an employer hires a foreign national who does not possess a visa status permitting employment activities, the employer may face criminal penalties of up to three years’ imprisonment or a fine of up to KRW 30 million, regardless of intent. Importantly, statements made during the enforcement or investigation process may later affect both administrative sanctions and criminal proceedings. Accordingly, any written statements or responses carelessly submitted during an investigation may later be used as unfavorable evidence. Essential Response Strategies After an Enforcement Action If a crackdown on the illegal employment of foreign nationals has already taken place, several critical response measures are necessary. Review of Visa Status and Actual Working Arrangements The legal assessment may differ significantly depending on whether the foreign national merely “helped with work,” was in an actual employment relationship, or was working pursuant to a lawful dispatch or subcontracting arrangement. Securing Relevant Documents and Evidence Key materials include: Employment contracts Salary payment records Working hour records These materials play an important role in determining issues such as intent and the existence of an actual employment relationship. Responding Carefully to Statements and Confirmation Documents Many individuals assume that written explanations or confirmation statements are merely procedural formalities. However, such documents are often later used as evidence supporting legal liability. In cases involving crackdowns on illegal employment of foreign nationals, accurately organizing the factual background and supporting materials is critically important. If this process is not handled properly, unnecessary legal liability may expand significantly. Why Legal Representation Matters in Illegal Employment Cases Involving Foreign Nationals Although these cases may appear to be simple labor issues, they are in fact complex matters involving immigration law, criminal law, and administrative procedures simultaneously. Legal professionals play a particularly important role in the following areas: Legal analysis regarding potential visa status violations Determining whether an actual employment relationship existed Establishing defense strategies regarding the employer’s intent Responding to administrative sanctions such as departure orders or deportation, as well as criminal penalties including imprisonment or fines Many clients seek legal advice only after enforcement actions have already taken place. However, establishing a strategy during the initial response stage is far more important. Sudden enforcement actions related to the illegal employment of foreign nationals often create significant anxiety and uncertainty. In these situations, accurate legal analysis and a strategic response can make a substantial difference. Decent Law Firm’s Response Strategy Decent Law Firm has continuously handled various labor and criminal matters, including disputes involving the employment of foreign nationals. In particular, for cases involving crackdowns on the illegal employment of foreign nationals, we provide legal assistance in the following ways. First, we analyze the background of the enforcement action and the employment structure to determine the actual scope of potential legal liability. Second, we systematically organize case materials to prevent unnecessary criminal liability or excessive administrative sanctions. Third, we establish response strategies aimed at minimizing legal risks for both employers and foreign workers. Crackdowns on the illegal employment of foreign nationals are not matters that end with simple fines. They may significantly affect business operations and immigration status as well. If you are facing difficulties due to an unexpected enforcement action, it is essential to carefully review the circumstances of the case and respond strategically. With professional legal assistance, it is possible to find a more stable and effective path toward resolution.
2026-03-10 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
Winning an Unfair Dismissal Case: What You Need to Know About Remedies and Strategic Response
Criteria and Legal Framework for Unfair Dismissal Under Article 23 of the Labor Standards Act, an employer may not dismiss an employee without just cause. Accordingly, whether a dismissal is lawful is generally assessed based on three key factors. 1) Justifiability of the Grounds for Dismissal A minor mistake or a relatively light disciplinary issue is generally not sufficient to justify termination of employment. 2) Legality of the Procedure If the employer failed to follow the disciplinary procedures set out in the rules of employment or collective agreement, or failed to provide the employee with a sufficient opportunity to explain or defend themselves, the dismissal may be deemed procedurally defective. 3) Proportionality of the Dismissal If other employees received only warnings for the same or similar conduct, while only one specific employee was dismissed, the dismissal may be considered excessive. In such cases, the nature and seriousness of the misconduct, the purpose of disciplinary action, and the standards for determining disciplinary measures are assessed comprehensively. If the disciplinary measure is found to be objectively and clearly unreasonable, it may be deemed a violation of the principle of equality. These factors are assessed as a whole. If the dismissal fails to meet these standards, there is a high possibility that the Labor Relations Commission may issue a remedy order, or that a court may render a judgment invalidating the dismissal. Key Evidence Required to Win an Unfair Dismissal Case In an unfair dismissal case, the most important element is evidence. If you begin searching for documents only after receiving notice of dismissal, it may already be difficult to secure key materials. The following materials may play a critical role: Written notice of dismissal or disciplinary notice Performance evaluation records and work performance documents Company rules of employment and personnel regulations Emails and messenger conversation records Statements from colleagues or internal company notices These materials serve as essential evidence to prove that the grounds for dismissal were unjustified. In actual cases, whether sufficient evidence has been secured often significantly affects whether the dismissal is recognized as unfair and whether remedies are granted. In particular, if the company claims redundancy dismissal based on “managerial necessity,” objective materials must be secured to refute whether the employer satisfied the separate requirements under Article 24 of the Labor Standards Act, including urgent managerial necessity, efforts to avoid dismissal, reasonable and fair selection of employees subject to dismissal, and sincere consultation with employee representatives. If the dismissal is based on disciplinary grounds such as “work attitude issues,” evidence is needed to prove that such grounds are unjustified. Why Legal Representation Matters in Unfair Dismissal Cases An unfair dismissal case cannot be resolved simply by arguing that the dismissal was unfair. In Labor Relations Commission proceedings, an application for remedy must be filed within three months from the date of unfair dismissal. The process requires systematic preparation, including drafting the application, responding to the employer’s submissions, submitting evidence, and preparing for the hearing. In addition, employers usually respond with assistance from certified labor consultants or legal professionals. If an employee proceeds alone, they may be placed at a disadvantage in procedural and strategic aspects. Professional assistance is especially important in the following areas: Organizing the legal issues of the case Developing a strategy for collecting and organizing evidence Preparing for Labor Relations Commission hearings Establishing a strategy for reinstatement and claims for wages equivalent to lost earnings An unfair dismissal case is not just a simple dispute. It can significantly affect one’s future employment and career. Therefore, to increase the possibility of obtaining relief for unfair dismissal, a strategic approach from the initial stage is crucial. If the issue is taken lightly and the timing for response is missed, it may lead to consequences that are difficult to reverse. A careful approach is essential. Decent Law Firm’s Strategy for Unfair Dismissal Cases Because unfair dismissal is directly connected to an individual’s livelihood, it requires a careful approach that goes beyond basic legal response. Based on our experience in labor cases, Decent Law Firm supports clients in the following ways. First, we closely review the lawfulness of the grounds and procedures for dismissal at the initial stage and objectively assess the likelihood of success in an unfair dismissal case. Second, we systematically design an evidence preservation strategy and present persuasive materials during Labor Relations Commission hearings. Third, we establish a tailored response strategy based on the client’s objectives, including reinstatement, claims for wages equivalent to lost earnings, and potential settlement. Our goal is to provide practical support to those facing unfair dismissal. Rather than attempting to resolve the matter alone, working with professionals to develop a strategy can become a decisive turning point in the direction of the case. If you have received an unfair notice of dismissal, the initial response can determine the outcome. Accurate analysis and strategic response are essential to increasing the likelihood of success in an unfair dismissal case.
2026-03-06 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
