South-Korea Prosecution Is Developing Its Own Tracking System For "Kimchi Coins"

The prosecution is taking significant steps to develop its own tracking system specifically designed for “Kimchi coins,” which are coins traded exclusively on domestic exchanges. With the rise in cryptocurrency-related cases and the prevalent use of Kimchi coins in domestic crimes, tracing virtual assets and funds has become increasingly challenging. To address this issue, the Cyber Investigation Department of the Supreme Prosecutors’ Office plans to commission consulting services in the second half of this year to conduct a feasibility study on a dedicated “virtual asset tracking system.” Once the study results are obtained, the prosecution aims to collaborate with the Ministry of Science and ICT to construct the innovative “Kimchi coin tracking system.”

Current tracking systems, as noted by a prosecution official, lack sufficient data related to Kimchi coins, resulting in limitations when it comes to tracing funds. Developing a proprietary system is considered vital not only to assist investigations but also to enhance the credibility of investigation outcomes in court. Presently, both domestic and international investigative agencies rely on programs like “Chainalysis” for virtual asset tracking. However, these systems primarily cater to global markets like Bitcoin and Ethereum, leading to constraints in effectively tracing domestic Kimchi coins. This has prompted a growing consensus on the urgent need for the development of domestic virtual asset tracking technology. If successful, the Supreme Prosecutors’ Office would be the first government agency to create such a system, marking a significant milestone in the field.

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