South Korean Financial Regulatory Agency Launches Crypto Transaction Fee Investigation, a Political Move to Fulfill the Elected President's Commitment.
The South Korean Financial Services Commission (FSC) has just announced a plan to conduct an in-depth investigation into the fee structure of domestic crypto exchanges. This move is not merely a routine review, but a politically significant step aimed at realizing the key campaign promise of President-elect Lee Jae-myung.
During the election campaign, Lee Jae-myung promised to reduce the cost burden for investors, especially targeting young people. This FSC investigation is the first step in implementing that commitment, with the goal of determining whether the current fees charged by exchanges are "excessively burdensome for users" and whether these fees are reasonable when compared to international platforms.
According to the plan, the FSC will require crypto exchanges to provide detailed data on fee calculation methods, revenue structure, and total generated revenue. This is a direct move targeting the massive revenue of major industry players like Upbit and Bithumb, which have recorded very high profits in recent years.
An FSC official stated that the purpose of the investigation is not to impose a specific fee ceiling, but to build policy standards based on market analysis data. This statement also aims to allay concerns about excessive government intervention in business operations.
Notably, this investigation comes just months after the FSC itself required crypto exchanges to pay a "supervision fee" equivalent to 0.6% of total revenue from March 2025. This creates a somewhat paradoxical context: while the government seeks to reduce transaction fee burdens for users, they are simultaneously creating a significant revenue source for the budget from exchange revenues.
For example, Dunamu, Upbit's parent company, recorded revenues of up to $714 million in 2023, indicating the substantial scale of this supervision fee.
The new administration's intervention in exchange business models marks a significant shift in the relationship between state regulators and the crypto industry in South Korea. It demonstrates a transition from focusing solely on anti-money laundering (AML) and investor protection to more direct interventions in market commercial activities.
The results of this investigation are expected to not only directly impact exchange profits but also reshape the competitive environment and power dynamics between regulators and one of the most dynamic sectors of South Korea's digital economy.
