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AI Investment Scams in Korea: Common Tactics and What Victims Should Do
If phrases like “AI-powered trading,” “AI stock recommendations,” or “AI-managed investment platforms” sound trustworthy, that is exactly what scammers are relying on. Recently, investment fraud schemes using AI-related marketing have rapidly increased in Korea and overseas. Many scams now combine fake AI trading systems, deepfake celebrity endorsements, fabricated profit dashboards, and fake news articles to make fraudulent platforms appear legitimate. For foreign residents, overseas investors, and expatriates living in Korea, these scams can be especially difficult to identify because the platforms often imitate real Korean financial services or use Korean-language media branding to create credibility. This article explains how AI investment scams typically operate, what warning signs to watch for, and what legal steps victims should consider in Korea. What Is an AI Investment Scam? An AI investment scam refers to a fraud scheme that claims to use artificial intelligence, automated trading algorithms, or machine-learning technology to generate investment profits. In many cases, the “AI system” either does not exist at all or performs no real trading activity. Instead, scammers use technical jargon and fake performance data to convince victims that profits are being generated automatically. Unlike traditional investment fraud that simply promises high returns, AI investment scams exploit public trust in advanced technology. Because most investors cannot independently verify how AI systems actually work, the fraud often goes undetected until substantial losses occur. Some operations even impersonate legitimate financial companies, fintech businesses, or investment professionals to appear more credible. Common Types of AI Investment Scams One of the most common tactics involves so-called AI automated trading platforms. Victims are told that an AI system continuously analyzes the market and guarantees stable monthly profits. In reality, early investors may receive small payouts to build trust before larger deposits are requested. Another rapidly growing issue is the use of deepfake videos featuring celebrities, economists, or business figures. Fraudsters use AI-generated voice and facial synthesis technology to create fake endorsement videos promoting fraudulent investment platforms. These videos are frequently distributed through YouTube, Instagram, Telegram, KakaoTalk, and other social media channels. Scammers also create fake investment websites that closely resemble legitimate exchanges or financial news outlets. Some schemes use fabricated news interviews or cloned media websites to make the platform appear trustworthy. Victims are often shown fake account dashboards displaying large profits generated by “AI trading.” However, when they attempt to withdraw funds, the operators demand additional payments for taxes, authentication fees, security deposits, or account verification. Once additional money is sent, communication is typically cut off. How to Identify AI and Deepfake Investment Fraud As deepfake and AI technologies become more sophisticated, it is now more important to verify the source of information rather than relying only on visual impressions. If a celebrity, financial expert, or company appears in an advertisement, investors should confirm the partnership through official websites or verified social media accounts. Fraudulent advertisements frequently misuse public figures without authorization. Fake news articles are another major warning sign. Scammers often clone the design of well-known Korean media outlets and publish fabricated interviews promoting investment platforms. Investors should carefully review the actual domain address and compare it with the legitimate news website. It is also important to verify whether the company is properly registered with Korean financial regulators. Businesses offering investment advisory or discretionary investment services in Korea may require regulatory registration depending on the structure of the service. Promises such as “guaranteed returns,” “risk-free profits,” or “principal protection” should also be treated with extreme caution. Under Korean financial regulations, guaranteed investment profits are heavily restricted and frequently associated with illegal schemes. What Victims Should Do Immediately If you suspect that you are dealing with an AI investment scam, the first priority is to stop sending additional funds immediately. Scammers commonly claim that extra payments are required to unlock withdrawals, pay taxes, verify accounts, or complete compliance checks. These demands are often part of the fraud itself. Victims should contact their bank as quickly as possible to request a payment suspension or fraud report. In Korea, rapid action can sometimes improve the chances of freezing funds before they are transferred further. Evidence preservation is also critical. Victims should immediately save and back up: Chat and messenger conversations Transaction and remittance records Screenshots of the platform and account balances Advertisements and promotional videos Website URLs and account information Because many operators use overseas servers, borrowed accounts, or cryptocurrency transfers, early evidence collection and prompt reporting are extremely important. In serious cases, criminal complaints, account tracing procedures, and civil recovery actions may need to proceed simultaneously to maximize the possibility of recovering funds. AI Does Not Change the Legal Nature of Fraud Although these scams use modern technology and sophisticated marketing tactics, the underlying legal issues remain largely the same. Under Korean law, AI investment scams may involve criminal fraud, illegal fundraising schemes, violations of financial regulations, and other financial crimes. The use of deepfake technology and overseas infrastructure simply makes investigation and recovery more difficult. The earlier victims respond, preserve evidence, and seek legal guidance, the higher the likelihood of preventing additional losses and improving recovery options. Decent Law Firm advises clients on AI investment scams, deepfake-related fraud, cryptocurrency-related investment schemes, and cross-border financial crime matters in Korea.
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Crypto Delisting Injunctions in Korea After WEMIX: What Courts Actually Examine
Delisting Decisions Are Increasing Faster Than New Listings Korean virtual asset exchanges are tightening their listing maintenance standards more aggressively than ever before. Recent regulatory reviews by Korean financial authorities show that the number of delisting decisions and “investment warning” designations continues to rise alongside stricter compliance expectations imposed on exchanges. For crypto projects, this means that exchange delisting is no longer viewed as a rare or exceptional event. It has become a practical legal and operational risk that must be managed from the early stages of project governance. As a result, injunction filings against exchange delisting decisions have become one of the most important emergency legal remedies available to blockchain projects operating in Korea. What Is a Delisting Injunction in Korea? When a Korean exchange decides to terminate trading support for a token, the affected project may file a court injunction seeking suspension of the delisting decision. The purpose of the injunction is typically to: temporarily stop the delisting from taking effect, delay the trading termination schedule, secure time for additional explanations or negotiations, and prevent irreversible market damage before a full lawsuit is resolved. Korean courts generally examine three core issues during these proceedings. 1. Existence of a Protectable Right The court reviews whether the project has any legally protectable right to continued listing or trading support under: listing agreements, exchange policies, operational guidelines, or principles of fair administrative procedure. 2. Urgency and Irreparable Harm The project must show that immediate delisting would cause damage that cannot easily be reversed later. Potential factors may include: collapse of token liquidity, reputational damage, disruption to global exchange relationships, investor panic, or serious operational harm to the project ecosystem. 3. Abuse of Discretion by the Exchange Korean courts generally recognize that exchanges have broad discretion regarding listing and delisting decisions. However, projects may still challenge a decision if there are indications of: inconsistent application of internal standards, insufficient opportunity to respond, vague or unclear reasoning, procedural unfairness, or arbitrary decision-making. How the WEMIX Case Changed Korean Court Practice Earlier Korean delisting disputes occasionally resulted in injunctions being granted when exchanges failed to provide sufficient procedural fairness. For example, courts previously viewed the following issues critically: lack of concrete explanation, inadequate notice, failure to provide meaningful clarification opportunities, or inconsistency between published standards and actual enforcement. However, after the WEMIX litigation, Korean courts have shown a much stronger tendency to respect the autonomy and expertise of exchanges. Since then, courts have been more reluctant to interfere where exchanges can demonstrate objective concerns such as: circulation discrepancies, security incidents, governance instability, operational transparency concerns, or sustainability risks. In practice, this means that simply arguing “the delisting is unfair” is rarely sufficient today. Projects must instead build a highly structured argument supported by objective evidence, procedural analysis, and technical documentation. What Crypto Projects Should Prepare Immediately After a Delisting Notice • Review Listing Agreements and Exchange Policies Projects should carefully compare the exchange’s actual actions against its published rules and contractual obligations. In Korean litigation, arguments regarding inconsistency or violation of the exchange’s own standards can become an important issue. • Organize the Entire Communication Timeline All communications related to the warning designation and delisting review process should be preserved, including: emails, official notices, response submissions, meeting records, clarification requests, and compliance materials. Procedural fairness often becomes one of the central battlegrounds in injunction proceedings. • Prepare Data-Driven Rebuttal Materials A large portion of recent Korean delisting cases involve “project risk” concerns. Accordingly, projects should prepare objective supporting materials such as: on-chain circulation data, treasury management records, security audit reports, governance documentation, development progress, and operational sustainability evidence. Korean courts increasingly expect evidence-based explanations rather than broad or abstract arguments. Delisting Injunctions Require Early Strategic Preparation Korean virtual asset regulation and exchange compliance standards are becoming significantly stricter each year. At the same time, courts are now more inclined to respect exchange discretion following the WEMIX precedent. For this reason, successful injunction strategies require far more than emergency filings alone. Projects must carefully analyze procedural issues, technical evidence, governance structures, disclosure practices, and exchange compliance standards from the outset. Decent Law Firm advises blockchain projects, crypto foundations, and virtual asset businesses on Korean exchange delisting disputes, injunction proceedings, compliance risks, and regulatory strategy.
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M&A Legal Due Diligence Costs and Scope in Korea: A Practical Guide
The cost of M&A legal due diligence is not simply a lawyer’s fee. It depends on the size of the transaction, the complexity of the target company, and the scope of the review itself. For foreign companies and investors entering the Korean market, understanding how legal due diligence works is critical because the findings can directly affect pricing, indemnity structures, and even whether the transaction proceeds at all. What Is Legal Due Diligence in an M&A Transaction? Legal due diligence (LDD) is the process of identifying and reviewing the legal risks of a target company before completing an acquisition or investment. In Korea, legal due diligence is typically conducted after the signing of an LOI (Letter of Intent) and before the execution of the SPA (Share Purchase Agreement). Key review areas usually include: Material contracts and commercial arrangements Litigation and disputes Employment and labor issues Regulatory compliance Intellectual property rights Corporate governance and shareholder structure Licenses and permits Subsidiaries and overseas entities The purpose is not simply to “find problems,” but to assess legal exposure that may transfer to the buyer after closing. The results of due diligence often directly influence: Purchase price adjustments Representations & warranties (R&W) Indemnification clauses Escrow arrangements Closing conditions Deal restructuring decisions What Determines M&A Legal Due Diligence Costs? There is no fixed pricing standard for legal due diligence in Korea. Costs are generally determined by several combined factors. 1. Transaction Size Larger transactions typically involve: Broader review scope Higher legal exposure Increased reporting requirements More intensive negotiation support Cross-border transactions and strategic acquisitions usually require deeper review compared to early-stage investments. 2. Complexity of the Target Company Costs increase when the target company has: Multiple subsidiaries Overseas entities Large numbers of commercial contracts Regulated business operations Complex shareholder arrangements Convertible securities, SAFE, or stock option structures Industries such as fintech, crypto, healthcare, SaaS, and platform businesses often require additional regulatory analysis. 3. Scope of Due Diligence The scope of review is one of the biggest cost variables. • Full Scope Due Diligence A full-scope review examines the overall legal condition of the company in detail. This is commonly used in: Strategic acquisitions Large-scale M&A deals Transactions involving operational integration (PMI) While more expensive and time-consuming, it can significantly reduce post-closing legal risks. • Red Flag Due Diligence A red-flag review focuses only on major legal risks that could materially affect the transaction. This approach is often used by: Financial investors Venture capital firms Early-stage investors Buyers operating under tight timelines It is generally faster and less expensive, but risks outside the agreed review scope may remain unidentified. How Are Legal Due Diligence Fees Structured? In practice, Korean law firms usually structure due diligence fees in one of three ways. Hourly Billing Fees are calculated based on: Time spent Hourly rates of lawyers involved This model is commonly used when the review scope may change during the transaction. Fixed Fee A fixed fee is agreed upon based on: Defined review scope Estimated timeline Expected workload This structure offers budget predictability but may require additional fees if the scope expands later. Hybrid Structure Many mid-to-large transactions use a hybrid model: Base scope under a fixed fee Additional work billed hourly This approach balances flexibility with cost predictability. Data Room Preparation Also Affects Costs The quality of document organization can significantly impact due diligence efficiency. Well-structured VDRs (Virtual Data Rooms) reduce: Review time Additional document requests Follow-up interviews Reporting delays Poorly organized materials often increase both costs and transaction risks. Importantly, legal advisors can only assess documents actually provided to them. Missing or incomplete disclosures may limit the scope of legal responsibility and the reliability of the review itself. Why Due Diligence Findings Matter Legal due diligence findings can materially change the transaction structure. Purchase Price Adjustments Material legal risks may justify: Lower valuations Deferred payments Escrow retention Representation & Warranty Negotiations Discovered risks are often reflected in: Disclosure schedules Liability caps Survival periods Basket thresholds Specific indemnities Deal Restructuring or Termination Serious legal issues may lead to: Changes in acquisition structure Asset deals instead of share deals Conditional closing arrangements Transaction termination Proper Scope Design Is Critical One of the most common problems in M&A transactions is starting due diligence without clearly defining the review scope. When the scope is unclear: Costs become unpredictable Timelines expand Review items continue increasing Negotiations become inefficient A properly structured process usually follows this order: Define review scope Discuss fees and timeline Execute engagement agreement Open VDR and begin review Deliver due diligence report Reflect findings in SPA negotiations Legal due diligence should not be evaluated solely based on price. The more important question is whether the legal team can accurately identify transaction-critical risks and translate them into practical deal protections. Decent Law Firm advises domestic and international clients on M&A transactions, startup investments, cross-border acquisitions, and regulatory risk analysis in Korea. If you are considering an acquisition or investment in Korea and would like to discuss an appropriate due diligence scope and fee structure, our corporate advisory team would be happy to assist.
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Crypto Romance Scams in Korea: Fake Exchanges and Investment Fraud You Should Watch Out For
If someone you met through social media suddenly encourages you to invest in cryptocurrency through a private platform or “exclusive opportunity,” there is a high chance it could be a romance scam. In recent years, crypto-related romance scams have become increasingly sophisticated in Korea and globally. Instead of directly asking victims for money, scammers now build emotional trust first and then lure victims into fake cryptocurrency exchanges or fraudulent overseas investment platforms. Because digital assets can be transferred and laundered quickly across borders, fast legal action and evidence preservation are critical once suspicious activity is identified. What Is a Crypto Romance Scam? A romance scam is a type of fraud where scammers build emotional relationships online through platforms such as Instagram, Facebook, Telegram, KakaoTalk, or dating apps, and then exploit that trust for financial gain. Recently, these scams have evolved into cryptocurrency investment fraud schemes involving fake exchanges and manipulated trading platforms. Scammers often pretend to be: Overseas professionals or business owners Wealthy investors Crypto traders or financial experts Individuals interested in a long-term relationship Rather than immediately discussing investments, they usually spend days or weeks building emotional intimacy and trust. Once the victim becomes emotionally attached, the scammer introduces a “special investment opportunity” or claims they can help generate high returns through crypto trading. In many cases, victims are initially allowed to withdraw small amounts of money to create the illusion that the platform is legitimate. The Typical 5-Step Structure of a Crypto Romance Scam 1. Initial Contact Through Social Media or Dating Apps Scammers approach victims through Instagram, Facebook, Telegram, KakaoTalk, or international dating platforms using fake profiles designed to appear trustworthy and successful. 2. Building Emotional Trust They communicate consistently and intensively, sharing personal stories and emotional conversations to create psychological closeness. At this stage, investment discussions are usually minimized. 3. Introducing Cryptocurrency Investments Once trust has been established, the scammer begins sharing screenshots of trading profits or investment success stories. Victims are often told things like: “This is for our future together.” “I want to help you make money too.” “This opportunity is only available to a few people.” 4. Moving the Victim to a Fake Exchange The victim may first purchase cryptocurrency through a legitimate exchange before being directed to a separate “high-return platform” or overseas exchange controlled by the scammers. The platform may display fake profits and even allow limited withdrawals initially to gain further trust. 5. Withdrawal Refusal and Additional Deposit Requests Once larger amounts are invested, the victim is suddenly unable to withdraw funds. The scammers then demand additional payments for: Taxes Security deposits Verification fees Unlocking accounts Anti-money laundering clearance When the victim refuses or becomes suspicious, communication is cut off and the website often disappears entirely. Why Victims Often Lose Significant Amounts Most crypto romance scams begin with relatively small investments. However, repeated emotional manipulation and fabricated profit displays often lead victims to invest life savings, loans, retirement funds, or borrowed money. Many victims delay reporting the scam because they emotionally trust the scammer or feel embarrassed about the situation. Secondary scams are also common. After the initial fraud, victims may be contacted by fake “recovery companies” promising to retrieve lost cryptocurrency in exchange for upfront fees. If a company or individual requests advance payment without clear professional credentials, caution is strongly advised. What You Should Do If You Become a Victim ✔️ Stop Sending Additional Funds Immediately Claims such as “You must deposit more money to unlock withdrawals” are common scam tactics. Do not make additional transfers under any circumstances. ✔️ Preserve All Evidence The following materials can become critical evidence during investigations and legal proceedings: Social media profiles and usernames Telegram, KakaoTalk, or direct message conversations Wallet addresses and transaction records Screenshots of the trading platform Exchange URLs and account details Bank transfer records ✔️ Seek Legal Assistance Quickly Cryptocurrency-related fraud cases often involve rapid fund movement, overseas transfers, and money laundering structures. Early legal review can help victims preserve evidence, prepare criminal complaints, and establish an effective legal strategy with investigative authorities. You Do Not Have to Handle a Crypto Romance Scam Alone Crypto romance scams are highly organized financial crimes that exploit emotional trust and psychological vulnerability. If you suspect fraudulent activity or have already suffered losses, it is important to seek professional legal guidance as early as possible. The Digital Asset Team at Decent Law Firm provides practical legal strategies covering transaction analysis, evidence preservation, and criminal investigation matters related to cryptocurrency fraud. Lawyers with experience in digital asset disputes and crypto-related investigations can help review the most appropriate legal options for your situation.
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Real Estate Presale Scams in Korea: Warning Signs You Should Never Ignore
“Congratulations, you’ve been selected for a special apartment presale.” If you recently received a call, text message, or KakaoTalk message like this in Korea, it may not be a legitimate housing offer — it could be a sophisticated real estate voice phishing scam. In recent years, scams involving apartment presale rights (“bunyang rights”) have become increasingly advanced. Fraudsters now impersonate developers, sales agencies, financial institutions, and even public organizations while using fake websites, forged contracts, and manipulated caller IDs to appear legitimate. For foreigners living in or investing in Korea, these scams can be particularly confusing because the Korean real estate subscription and presale system is already complex. This article explains the most common types of Korean apartment presale scams and what to do if you become a victim. Why Apartment Presale Scams in Korea Are So Convincing Real estate presale scams in Korea typically involve fraudsters contacting victims through phone calls, text messages, messaging apps, or fake websites in order to steal deposits or personal information. These scams are difficult to identify because they often imitate actual Korean apartment subscription and presale procedures. Scammers frequently: Use the names of real apartment complexes currently under development Impersonate legitimate developers or sales agencies Create fake Korean real estate websites and contracts Manipulate caller ID information Offer “urgent” discounted presale rights far below market price Many victims only realize they were scammed after funds have already been transferred. 3 Common Types of Korean Presale Fraud 1. Fake Subscription Winner Scam Victims receive messages claiming they were selected for a “special supply” apartment opportunity or priority subscription allocation. The scammer then demands advance payments for: document processing fees priority reservation fees subscription maintenance fees special allocation deposits In legitimate Korean apartment subscription procedures, these kinds of payments are generally not requested through personal bank accounts. If someone asks you to transfer money to an individual account, you should treat it as a major warning sign. 2. “Cheap Presale Rights” Deposit Scam Scammers advertise apartment presale rights at prices significantly below market value and pressure victims to send deposits quickly. They often claim: “This is an urgent resale” “The seller needs immediate cash” “The deal expires today” After receiving the deposit or premium payment, the scammer disappears. This type of fraud is increasingly common in Korea’s online real estate communities and messaging platforms. 3. Fake Developer or Sales Agency Impersonation Some scammers create highly convincing fake sales channels using the names of actual apartment projects currently under construction. They may provide: fake contracts forged official documents cloned websites fake customer service numbers Before making any payment, you should independently verify: the official developer website company registration details official contact numbers payment account ownership actual apartment subscription announcements What To Do If You Sent Money Step 1. Request Immediate Payment Suspension If you transferred money, contact your bank immediately and request a payment suspension or fraud report. Time is critical in Korean voice phishing cases. In many situations, the first 24 hours are the most important for preventing withdrawal or further transfer of funds. Step 2. Preserve Evidence You should immediately save and back up all relevant materials, including: text messages KakaoTalk conversations call records and recordings bank transfer receipts contracts or documents received screenshots of websites and profiles Digital evidence can disappear quickly, especially in messaging applications. Step 3. Report the Case to Korean Authorities Victims can report the incident through: the Korean Cyber Crime Reporting System (ECRM) local police stations in Korea Providing organized evidence from the beginning can significantly affect how quickly the investigation progresses. Step 4. Review Civil and Criminal Legal Options Depending on the case, additional legal actions may include: criminal complaints for fraud account freezing or provisional seizure applications civil damage claims tracing related accounts and accomplices Actual recovery possibilities vary depending on the remaining account balance, fund movement, and whether organized fraud groups are involved. Fast Legal Action Matters in Korean Real Estate Fraud Cases Many victims delay reporting because they hope the transaction may still be legitimate. Unfortunately, scammers often use that hesitation to move or withdraw funds before legal action begins. Apartment presale fraud cases in Korea require fast evidence preservation and immediate legal action to improve the chances of recovery. If you are unsure whether the situation qualifies as fraud, it is still important to seek legal review as early as possible. Decent Law Firm advises both Korean and foreign clients on Korean voice phishing, real estate fraud, and financial crime matters, including early-stage reporting, evidence organization, criminal complaints, and asset recovery strategy.
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2026 AML Reform in Korea: 3 Key Anti-Money Laundering Obligations Under the Revised FSCMA
The amended Korean Anti-Money Laundering law is no longer just a compliance issue for banks. It is rapidly becoming a core operational and governance issue for virtual asset businesses, fintech companies, and even certain professional service providers. The revised Act on Reporting and Using Specified Financial Transaction Information (commonly referred to as Korea’s AML law or “Special Financial Transactions Act”) was promulgated on February 19, 2026, and is scheduled to take effect on August 20, 2026. The amendments significantly strengthen AML obligations for Virtual Asset Service Providers (VASPs) and expand the overall compliance framework surrounding crypto-related transactions in Korea. This article outlines the three most important AML changes businesses should understand before the new rules take effect. What Is Korea’s “Special Financial Transactions Act” (특금법)? Korea’s AML framework is governed by the Act on Reporting and Using Specified Financial Transaction Information, which establishes reporting, monitoring, and internal control obligations designed to prevent: Money laundering Terrorist financing Illicit use of financial systems Under this framework, financial institutions and VASPs must identify suspicious transactions, verify customer information, maintain records, and implement internal AML controls. In practical terms, the law is designed to prevent criminal proceeds from entering or moving through the Korean financial system. 1. Stronger KYC and Transaction Monitoring Requirements The first major change is the expansion of customer due diligence and risk-based monitoring obligations. Under the revised rules, financial institutions and VASPs will be expected to verify not only customer identity, but also: Source of funds Purpose of transactions Beneficial ownership (BO) Ongoing transaction behavior and risk profile Electronic KYC (e-KYC), non-face-to-face identity verification, and real-time suspicious transaction detection systems are becoming effectively mandatory operational standards. The revised framework also strengthens the Risk-Based Approach (RBA) and Enhanced Due Diligence (EDD) requirements for high-risk customers and transactions. In other words, AML compliance in Korea is moving away from a simple “ID verification” model toward a continuous risk management model. For crypto exchanges and fintech operators, this means AML systems must function as active monitoring infrastructure rather than passive onboarding procedures. 2. Expanded Reporting Obligations and Stronger Travel Rule Enforcement The second major reform focuses directly on virtual asset transactions. Stricter Entry Requirements for VASPs Korean regulators are strengthening licensing and registration standards for virtual asset businesses. Proposed measures include enhanced screening of: Major shareholders Executives and management personnel Financial soundness and governance structures The regulatory approach increasingly resembles traditional financial institution supervision. Expanded Suspicious Transaction Reporting (STR) Proposed amendments to the enforcement decree and supervisory regulations would effectively require mandatory suspicious transaction reporting (STR) for certain virtual asset transactions exceeding KRW 10 million. The final regulations are expected to be confirmed around July 2026. Expansion of the Travel Rule Korea is also moving toward broader implementation of the Travel Rule. The proposed changes would: Expand sender/recipient information transmission requirements Increase the scope of covered transactions Impose additional verification obligations on receiving VASPs For VASPs operating in Korea, AML obligations are no longer limited to registration requirements. They are becoming a central factor affecting operational design, transaction processing, onboarding policies, and even fee structures. 3. Broader AML Accountability and Expansion to Professional Service Providers The third major reform concerns governance, accountability, and expansion of regulated entities. AML Officers Elevated to Executive-Level Responsibility Korean regulators are pushing to formalize AML reporting officers as executive-level positions. This means boards of directors and senior management will be expected to assume direct responsibility for AML governance and oversight. AML compliance is increasingly treated as a corporate governance issue rather than merely an internal compliance function. Formalization of AML Compliance Evaluations The amendments would also codify AML system evaluations into law. Participation in regulatory AML assessments may become mandatory, and penalties are expected for: Refusing to submit materials Providing false information Obstructing regulatory reviews Expansion to DNFBPs Korea is also formally considering AML obligations for Designated Non-Financial Businesses and Professions (DNFBPs), including: Lawyers Accountants Tax advisors The government has indicated that further amendments aligned with FATF standards are under discussion for 2026. This signals a broader regulatory trend: AML obligations are expanding beyond banks and crypto exchanges into the wider professional services ecosystem. What Should Companies Prepare Before August 20, 2026? With the revised law taking effect on August 20, 2026, companies have limited time to review and upgrade their AML frameworks. Financial institutions, fintech operators, and VASPs should now assess: Internal AML policies and procedures KYC and monitoring systems Transaction screening capabilities Governance and reporting structures Travel Rule compliance processes Risk-based customer classification systems For many businesses, the real legal risk will not come from the existence of AML obligations themselves, but from failing to implement operational systems that regulators consider “effective” in practice. If your company is preparing for Korean AML compliance, virtual asset regulation, or VASP-related legal risk management, the Virtual Asset Team at Decent Law Firm can assist with regulatory analysis, compliance structuring, and AML framework reviews.