The public will soon have access to the crypto and other asset holdings of nearly 6,000 public officials in South Korea, thanks to a new law that aims to enhance transparency and accountability.
The law, which was passed by the National Assembly in October, requires public officials above a certain rank to disclose their assets, including cryptocurrencies, stocks, bonds, real estate and other valuable items. The law also imposes penalties for false or incomplete disclosures, such as fines, dismissal or imprisonment.
The main purpose of the law is to prevent corruption and conflicts of interest among public officials, especially those who are involved in policymaking or supervision of the financial sector. The law also reflects the growing importance of cryptocurrencies in South Korea, which has one of the largest crypto markets in the world.
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According to a recent survey by the Korea Institute of Public Finance, about 10% of South Koreans own some form of cryptocurrency, and the average amount held by each individual is about $6,000.
The law is expected to take effect in March 2024, after a six-month grace period for public officials to prepare their disclosures. The disclosures will be made available to the public through an online portal operated by the Anti-Corruption and Civil Rights Commission.
The public will be able to search for the asset holdings of specific public officials or browse by categories such as agency, rank or type of asset. The public will also be able to report any suspected violations or discrepancies through the portal.
One of the key features of the law is the strict enforcement of the disclosure requirements and the sanctions for non-compliance. According to the law, public officials who fail to disclose their assets or provide false or misleading information will face fines ranging from 10 million won ($8,400) to 100 million won ($84,000), depending on the value of the undisclosed assets.
In addition, public officials who intentionally conceal or transfer their assets to evade disclosure will face dismissal from their positions or imprisonment for up to five years.
The law specifies how the penalties will be imposed and enforced by different authorities depending on the type and level of public officials. For example, the president, prime minister, ministers and heads of central administrative agencies will be subject to the review and decision of the Anti-Corruption and Civil Rights Commission.
The members of the National Assembly will be subject to the review and decision of the Ethics Committee of the National Assembly. The judges and prosecutors will be subject to the review and decision of their respective disciplinary committees. The local government heads and council members will be subject to the review and decision of their respective audit committees.
The law has been welcomed by many civil society groups and experts as a positive step towards improving transparency and trust in the public sector. However, some critics have raised concerns about the potential risks of exposing personal information and violating privacy rights of public officials.
Some also argue that the law may not be effective in curbing corruption, as some public officials may find ways to hide or transfer their assets to avoid disclosure. Therefore, it is important that the law is implemented and enforced properly, and that the public uses the information responsibly and constructively.