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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] SEOUL, Oct. 20 — South Korea’s top financial regulator, Lee Eok-won, Chairman of the Financial Services Commission (FSC), said the government will take action — including possible designation of Cambodia’s Prince Group as a restricted financial counterparty — regarding ₩91.2 billion (US$66 million) held in local bank subsidiaries abroad.
During a National Assembly audit on Oct. 20, Lee stated that the FSC is “consulting closely with the Ministry of Foreign Affairs and the Ministry of Economy and Finance,” adding, “We will actively take measures such as designating the entity as subject to financial transaction restrictions depending on the outcome.”
Prince Group, chaired by Chen Zhi, has been sanctioned by the U.S. and U.K. governments for alleged involvement in human trafficking, illegal detention, and large-scale telecom fraud operations. According to Rep. Kang Min-guk’s office, the group currently holds deposits totaling ₩91.2 billion across the overseas subsidiaries of four Korean banks: KB Kookmin Bank (₩56.66 billion), Jeonbuk Bank (₩26.85 billion), Woori Bank (₩7.02 billion), and Shinhan Bank (₩0.65 billion).
All four banks have frozen the assets as of Oct. 16, following coordinated sanctions imposed by the U.S. Treasury and the U.K. government earlier this month.
Meanwhile, on the issue of won-based stablecoins, Lee confirmed that the FSC will permit issuance through bank-led consortiums, but interest-bearing stablecoins will not be allowed, underscoring the regulator’s cautious approach to financial stability and consumer protection in digital asset markets.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
