Fifteen virtual asset service providers in South Korea have frozen 22.1 billion won of user assets, with a return rate of only 0.3%

According to a report by the Korea Herald, data obtained by South Korean National Power Party member Kang Min-guk from the Financial Supervisory Service shows that as of May 4, a total of 15 virtual asset service providers have ceased operations in South Korea, affecting approximately 1.949 million users, with frozen assets amounting to 22.1 billion won (14.87 million USD). Among them, only 6 operators have transferred user assets to the Digital Asset Protection Foundation, involving 1.92 million users and assets of about 2.36 billion won (1.59 million USD). Only 131 users have recovered their assets through the foundation, accounting for 0.006% of all users, with returned assets of about 74.52 million won (50,000 USD), which is only 0.3% of the total assets.

Member Kang pointed out that current laws do not require service providers to transfer user assets to the foundation when ceasing operations, lacking legal enforcement mechanisms, and the foundation has not actively promoted the asset recovery application process. He urged the Financial Supervisory Service to expedite the advancement of the second phase of legislation to strengthen user protection mechanisms.