Attorney Ohoon Kwon of Cha & Kwon Law Offices co-authored the “Commentary on the Virtual Asset User Protection Act” (Parkyoung Publishing, September 2026), writing the commentary on Article 17 (Penalty Surcharges for Unfair Trading Practices).

The commentary provides an article-by-article analysis of the Virtual Asset User Protection Act (VAUPA). It was written by 19 contributors, including lawyers from leading Korean law firms, practitioners from financial institutions and virtual asset exchanges, and prosecutors. Eight reviewers, including sitting judges and experts from research institutions and the industry, reviewed the text.

In this commentary, Attorney Kwon covers Article 17, which governs penalty surcharges for unfair trading practices involving virtual assets, such as the use of material non-public information, market manipulation, and fraudulent trading. Under Article 17, the Financial Services Commission may impose a penalty surcharge of up to twice the profit gained or loss avoided through the violation. Where no such profit or loss exists or it is difficult to calculate, the surcharge may be up to KRW 4 billion. The article also provides for adjusting the surcharge where a fine has already been imposed for the same violation, and for investigative authorities to provide materials needed to impose the surcharge.

In his contributor’s note, Attorney Kwon pointed out that companies have struggled to comply with the new rules since the Act took effect, and stressed that regulation should not become an excessive barrier to innovation. He also noted that, as overseas frameworks such as the EU’s Markets in Crypto-Assets Regulation (MiCA) take shape, Korea’s upcoming second-phase legislation should strike a balance between user protection and industry development.