National Tax Service prevents 'coin leakage' recurrence... Government manages 78 billion won in virtual assets

National Tax Service prevents 'coin leakage' recurrence... Government manages 78 billion won in virtual assets

Collection amount increased 100-fold in 3 years... Leakage incidents at agencies like police and prosecutor's offices are also successive

Store in 'cold wallet' institutional wallet immediately upon acquisition... Designate dedicated organization, conduct mock drills

The government will introduce a system to systematically manage 78 billion won worth of public sector virtual assets it holds.

The plan is to create specific internal regulations covering everything from acquisition to storage, inspection, and post-incident response, to prevent a series of virtual asset leakage incidents that have recently occurred at the National Tax Service and other agencies.

On the 10th, the government approved the 'Improvement Plan for Public Sector Virtual Asset Holding and Management System', which contains these contents, at an emergency economic headquarters meeting and economic ministers' meeting chaired by Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol at the Seoul Government Complex.

As of the 6th, the central government holds virtual assets totaling 78 billion won through seizure and attachment during investigation and tax collection processes. By agency, the National Tax Service holds 52.1 billion won, the Prosecutor's Office 23.4 billion won, the National Police Agency 2.2 billion won, and the Korea Customs Service 0.3 billion won. Public institutions hold 360 million won in virtual assets received as donations.

The government explained that these assets are amounts temporarily stored before final disposition such as forfeiture or sale, or before monetization immediately after receipt, and the overall scale is fluid depending on the situation.

As the public's ownership of virtual assets increases, the government's acquisition volume is also rapidly growing. The amount of compulsory collection of virtual assets last year was 63.9 billion won, more than 100 times higher compared to 2022 (0.6 billion won).

However, leakage incidents are recurring due to a lack of understanding of virtual asset characteristics and negligence in management by agencies.

In February, the National Tax Service announced through a press release that a virtual asset recovery phrase (mnemonic code) was leaked, resulting in the theft of 4 million PRTG, estimated to be worth several million won.

In the same month, the Gangnam Police Station belatedly discovered that 22 Bitcoins worth 2.1 billion won, which were stored on a USB drive after seizure, were leaked externally.

In August last year, the Gwangju District Prosecutor's Office lost 320 Bitcoins worth 30 billion won due to accessing a phishing site during a work handover.

Therefore, the government decided to activate a management system covering all stages from acquisition to post-incident response.

First, virtual assets seized or attached from personal wallets, etc., must be immediately transferred and stored in institutional wallets, such as 'cold wallets,' where internet connection is blocked on site. Important information such as private keys or recovery phrases issued when creating institutional wallets must be managed by two or more people in a divided manner.

For assets stored by exchanges, accounts will be immediately frozen with the cooperation of the service provider, and donated assets will be disposed of immediately upon receipt to prevent risks.

Physical control devices such as safes and closed-circuit (CC) TVs will be installed at storage locations, and entry records will be periodically checked.

In the event of a leakage incident, emergency measures will be taken immediately, such as creating a new wallet and transferring the remaining assets.

If the scale of damage exceeds a certain standard or external hacking is confirmed, the National Intelligence Service, National Police Agency, and Korea Internet & Security Agency (KISA) must be immediately notified, and reports must be made to the Ministry of Economy and Finance and the Ministry of Interior and Safety.

Accidents caused by violation of regulations will result in measures against those involved, including criminal charges and disciplinary action.

Each agency will designate a dedicated management organization and personnel, provide training for staff, and conduct mock leakage response drills at least once a year.

These guidelines will be distributed to each ministry, local government, and public institution starting from the 10th and will be implemented immediately.

If necessary, detailed guidelines appropriate for each agency's situation will be established.