The South Korean Board of Audit and Inspection (BAI) has formally requested the Ministry of Health and Welfare to ensure fairness in assessing eligibility for the basic pension. Meanwhile, the Bank of Korea (BoK) is also pushing for the implementation of strict new safety rules, including the introduction of a "circuit breaker" mechanism in the crypto industry to address the impacts of the Bithumb incident in February.
BAI Requests Assurance of Fairness in Pension Payments
The BAI has officially requested the Ministry of Health and Welfare to amend relevant laws to allow virtual assets to be included in the asset calculations for the national basic pension review. In its report on the actual operation and management of the elderly welfare system, the BAI pointed out that digital assets have clear economic value. Since the basic pension law does not classify them as assets, individuals with substantial digital assets may still qualify for basic pension benefits.
The basic pension is a government subsidy aimed at assisting low-income elderly individuals. The BAI believes that digital assets should be treated equally with other assets. Officials from the Ministry of Health and Welfare agree, stating that it is necessary to prevent the distribution of basic pensions to individuals with relatively high incomes who do not fall within the lowest 70% income bracket.
Currently, there are no legal means to require exchanges to provide information regarding digital asset holdings, prompting the BAI to request the Ministry of Health and Welfare to amend the law to establish a system that can request and verify such data.
Introduction of Strict Rules Following the Bithumb Incident
Today, the Bank of Korea released its annual payment and settlement report, reviewing the incident in February where Bithumb employees mistakenly paid 620,000 Bitcoin (BTC, worth approximately $42 billion) to customers as rewards instead of 620,000 Korean won (about $460). The BoK noted that the lack of internal controls was the main cause of this incident, as employees could make Bitcoin payments without approval from superiors or confirmation from monitoring departments. The exchange also only checks its internal ledger against the actual blockchain balance once a day.
Additionally, the BoK has suggested that lawmakers consider introducing a "circuit breaker" mechanism for crypto exchanges similar to that of the Korea Exchange (KRX), which would pause trading during sudden price fluctuations or large-scale abnormal orders.
In addition to strengthening regulation, the Bank of Korea is also advancing plans to establish a digital currency ecosystem. Candidate Shin stated that he generally agrees with the introduction of a domestic Korean won stablecoin, emphasizing that "maintaining monetary trust remains the most important." Shin pointed out that, unlike the United States or Europe, South Korea is not a base currency, thus requiring more caution in compliance aspects such as customer verification.