The Seoul Southern District Prosecutors’ Office (SSDPO) officially launched the Virtual Asset Crime Investigation Division on February 27, 2025. This marks the official establishment of a department that initially started as the Virtual Asset Crime Joint Investigation Unit in July 2023, operating as a temporary organization for one year and seven months before its elevation to a full-fledged division.
Organizational Structure and Key Investigation Areas
The Virtual Asset Crime Investigation Division is led by Chief Prosecutor Park Geon-uk, with a team consisting of seven prosecutors, 16 prosecution staff members, and 11 dispatched personnel from related agencies, including the Financial Services Commission, Financial Supervisory Service, National Tax Service, Korea Customs Service, and Korea Exchange, bringing the total team size to over 30 members.
The division’s primary focus includes:
- Market manipulation and unfair trading practices
- Scam cryptocurrency schemes
- Transnational virtual asset crimes
Particularly, the division will target insider trading based on undisclosed critical information, price manipulation through wash trading or matched orders, and the dissemination of false information for fraudulent transactions. Additionally, illegal foreign exchange transactions exploiting the ‘Kimchi Premium’ and cryptocurrency scams designed to defraud investors will also be strictly investigated.
Past Achievements and Future Outlook
Since its temporary establishment in July 2023, the Virtual Asset Crime Joint Investigation Unit has achieved significant results, uncovering various types of cryptocurrency-related crimes, leading to the indictment of 74 individuals and the arrest of 25 suspects. Furthermore, the unit seized illicit profits worth 84.9 billion KRW ($63 million) and froze 71.2 billion KRW ($52 million) in assets, effectively disrupting illegal financial flows.
With the formalization of the Virtual Asset Crime Investigation Division, the prosecution aims to further enhance transparency in the virtual asset market and reinforce investor protection.
Rapid Growth of the Virtual Asset Market and Legal Countermeasures
As of November 2024, South Korea’s virtual asset market has grown significantly, with 15.59 million investors and an average daily trading volume of 14.9 trillion KRW ($11 billion)—a figure approaching the combined Kospi and Kosdaq daily trading volume of 16.8 trillion KRW ($12.5 billion).
Additionally, with the implementation of the Virtual Asset User Protection Act on July 19, 2024, regulatory oversight and investigations into unfair trading practices in the cryptocurrency market are expected to intensify further.
Strengthening Law Enforcement… Establishing Market Order
The launch of the Virtual Asset Crime Investigation Division reflects the prosecution’s proactive efforts to curb financial crimes in the fast-growing cryptocurrency sector and to enhance investor protection. By intensifying crackdowns on fraudulent transactions and market manipulation, prosecutors aim to boost market credibility and establish a fairer, more transparent trading environment in South Korea’s virtual asset industry.
