15 Suspended Virtual Asset Service Providers in South Korea Have Frozen 22.1 Billion KRW in User Assets, with a Return Rate of Only 0.3%

According to ChainCatcher, citing a report from Yonhap News Agency, data obtained by National Power Party lawmaker Kang Min-guk from the Financial Supervisory Service shows that as of May 4, there were 15 virtual asset service providers that had ceased operations within South Korea, involving approximately 1.949 million users, with frozen assets amounting to 2.21 billion KRW (14.87 million USD). Of these, only six operators have transferred user assets to the Digital Asset Protection Foundation, concerning 1.92 million users and about 2.36 billion KRW (1.59 million USD) in assets. Only 131 users, accounting for 0.006% of all users, have recovered assets through the foundation, with approximately 74.52 million KRW (50,000 USD) returned—just 0.3% of total assets.

Lawmaker Kang pointed out that current law does not mandate that service providers ceasing operations must transfer user assets to the foundation, resulting in a lack of legal enforcement measures. He also noted that the foundation has not actively publicized the asset return application process. Kang called on the Financial Supervisory Service to accelerate the second phase of legislation to strengthen user protection mechanisms.