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

South Korea has expanded 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 Special Act on Prevention of Losses Caused by Telecommunications Financial Fraud and Refund for Losses, virtual asset exchanges will now be subject to the same victim relief procedures previously applied to traditional financial institutions.

Victims will benefit from payment suspensions, the extinguishment of claims, and refunds of stolen assets. They 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, which took effect October 1, aims to strengthen protections against increasingly sophisticated financial scams involving cryptocurrencies and other virtual assets. This change addresses the growing complexity of digital fraud schemes that have exploited regulatory gaps.

Singing rooms access eased

In another legal update, South Korea has reclassified singing rooms, known as "noraebang," allowing minors to enter these establishments while still restricting youth employment. The revised Juvenile Protection Act, effective October 8, removes the blanket prohibition on minors entering singing rooms.

The law also removes youth gaming establishments and internet cafes ("PC bang") from the list of businesses prohibited from employing minors, expanding job opportunities for young people. Additionally, employees at establishments deemed harmful to minors will be exempt from displaying notices concerning youth access and employment restrictions.

Food delivery transparency rules

South Korea has strengthened oversight of country-of-origin labeling on online marketplaces and food delivery platforms. Under the revised Act on Origin Labeling of Agricultural and Fishery Products, effective October 22, operators must notify businesses using their services of regulations governing origin labeling.

Platform operators that fail to fulfill this notification requirement could face administrative fines of up to 10 million won ($7,500). The measure aims to prevent vendors from falsely labeling products or misleading consumers about food origins amid the continued growth of online food transactions.

These legal updates reflect South Korea's ongoing efforts to adapt its regulatory framework to emerging challenges in digital finance, youth employment, and e-commerce while maintaining consumer protection standards.