[Legal updates in Korea] New protections for voice phishing victims involving virtual assets

Updated Law: Special Act on Prevention of Losses Cused by Telecommunications Financial Fraud and Refund for Losses

What it does: Expands financial fraud victim protection to virtual asset exchanges, allowing payment suspensions and refunds involving virtual assets

Took effect: Oct. 1

South Korea will expand protections for victims of voice phishing and other telecommunications financial fraud involving virtual assets, making it easier for victims to recover their losses.

Under the revised law, virtual asset exchanges will be subject to the same victim relief procedures previously applied to traditional financial institutions, including payment suspensions, the extinguishment of claims and refunds of stolen assets.

Victims will also be able to request cash refunds instead of virtual assets, with exchanges authorized to liquidate the assets and return the proceeds in cash.

The revision aims to strengthen protections against increasingly sophisticated financial scams involving cryptocurrencies and other virtual assets.

Updated Law: Juvenile Protection Act

What it does: Allows minors to enter singing rooms and eases employment restrictions at PC cafes and youth gaming establishments

Took effect: Oct. 8

South Korea will allow minors to enter singing rooms, commonly known as "noraebang," while easing employment restrictions at certain entertainment establishments.

Under the revised law, singing rooms will be reclassified from establishments where minors are prohibited from both entering and working to those where only youth employment is restricted, allowing minors to legally use the facilities.

Youth gaming establishments and internet cafes, commonly known as "PC bang," will also be removed from the list of businesses prohibited from employing minors, expanding job opportunities for young people.

The revision will also exempt employees at establishments deemed harmful to minors from requirements to display notices concerning youth access and employment restrictions.

The changes are intended to ease regulatory burdens on small businesses while expanding recreational and employment opportunities for young people.

Updated Law: Act on Origin Labeling of Agricultural and Fishery Products

What it does: Requires online intermediaries, including food delivery platforms, to inform vendors of country-of-origin labeling rules, with fines for noncompliance

Took effect: Oct. 22

South Korea will strengthen oversight of country-of-origin labeling on online marketplaces and food delivery platforms, requiring intermediaries to inform vendors of their legal obligations.

Under the revised law, operators of online brokerage platforms, including food delivery apps, must notify businesses using their services of regulations governing the origin labeling of agricultural and fishery products.

The measure aims to prevent vendors from falsely labeling products or misleading consumers about where food products originate, amid the continued growth of online food transactions.

Platform operators that fail to fulfill the notification requirement could face administrative fines of up to 10 million won ($7,500).

The revision seeks to improve transparency in online food sales and strengthen consumer protection by holding digital intermediaries more accountable for communicating labeling requirements.

In collaboration with the Ministry of Government Legislation, The Korea Herald publishes a monthly feature introducing recently updated South Korean laws. The ministry's Easy Law service provides accessible summaries of Korean laws categorized by topic in English and 11 other languages: Arabic, Bengali, Cambodian, Simplified Chinese, Indonesian, Japanese, Mongolian, Nepali, Thai, Uzbek and Vietnamese.