South Korean Lawmakers Pass 11 Important Welfare Bills

• The bundle of new laws includes changes to several existing legislations, aiming to legally support victims of financial fraud.
• Updation of rules against phone and online banking scams makes the process easier for banks to share information.
• The bill revisions show that South Korea is building the framework needed for regulated tokenized assets.

South Korea’s National Assembly has approved 11 widely supported bills focusing on public welfare and support. Their goal is to boost disaster aid, strengthen financial protections, and create clearer rules for growing industries.

The bundle of new laws includes changes to several existing legislations, aiming to legally support victims, strengthen safety systems, and encourage financial and market innovations. One of the main changes was to the country’s core disaster law (Framework Act on the Management of Disasters and Safety), making support for victims of big accidents and wildfires an official, long-term government function.

This change allows the government to set up a Central Disaster Victims Support Center, enabling organized help and compensation for families affected by major tragedies. These include events such as the December 29, 2024, Jeju Air crash (the country’s worst aviation accident in decades) and the huge 2025 forest fires in the southeast.

What the New Laws Mean for Crypto

One law updates rules against phone and online banking scams (Special Act on the Prevention of Loss Caused by Telecommunications-Based Financial Fraud and Refund for Loss), making it easier for banks, phone companies, and police to share information. 

While it doesn’t directly name crypto, it’s highly relevant to the crypto space, particularly because crypto scams and phishing are among the most widespread ways people get targeted in Asia (as well as worldwide). Fraudsters often use fake wallet links, exchange impersonations, and DeFi platforms to steal money.

Related: South Korea Crypto Exchanges Oppose Proposed 20% Ownership Cap

Additionally, better cooperation between banks, phone companies, and officials can help track or halt questionable payments, including those made to crypto wallets or transfer addresses. Though this law isn’t specifically about crypto, it makes the system for fighting online and fintech fraud stronger, which also covers crypto scams. It could be a first step toward creating dedicated laws for crypto crime in the future.

The new laws also include changes to the Financial Investment Services and Capital Markets Act and the Act on Electronic Registration of Stocks and Bonds, both of which are important for digital markets.

The revisions are seen as establishing the legal foundation for issuing tokenized securities within a regulated framework. Also, South Korea has been actively constructing a framework for security token offerings (STOs), meant to bring digital assets into the mainstream financial system while keeping investor protections in place.

These changes don’t legalize crypto wholesale, but they show that South Korea is building the framework needed for regulated tokenized assets, connecting traditional investments with blockchain-based tokens.

Related: South Korea Reopens the Corporate Door to Crypto After Nine Years