The Democratic Party of Korea and the government prepared a comprehensive plan to eradicate the surging voice phishing crimes and decided to swiftly push related legislation during the regular National Assembly session. The core tasks cited are codifying no-fault compensation liability for financial companies and raising the level of criminal penalties for voice phishing offenses.
Cho In-cheol, a lawmaker who serves as secretary of the Democratic Party's "voice phishing countermeasures task force," said at a briefing after a party-government consultation at the National Assembly on the 25th, "The party and the government share the seriousness of the recent surge in voice phishing damage and agreed to swiftly prepare and implement preventive and recurrence-prevention measures to protect the public's assets." The meeting was a follow-up to the government's "comprehensive plan to eradicate voice phishing" announced 4th, discussing the legislation of the measures.
The party-government plan places emphasis on: ▲ establishing an integrated response system across related agencies ▲ strengthening detection of crimes using advanced technology ▲ strengthening responsibility for those subject to damage prevention, such as the financial sector ▲ strengthening investigations and punishment.
The most notable part is strengthening the responsibility of financial companies. The party and the government plan to codify a "no-fault compensation liability system" that requires financial companies to compensate all or part of the voice phishing damage. Currently, only limited voluntary compensation is made under the "non-face-to-face financial accident responsibility-sharing standard," prompting criticism that there are limits to relief for victims. In response, the party and the government plan to finely calibrate the conditions and limits of compensation and push within the year to amend the "Special Act on the Prevention of Damage from Telecommunication Financial Fraud and the Refund of Damages (Telecommunications Financial Fraud Damage Prevention Act)." The Democratic Party has selected this bill as a priority for the regular National Assembly session this year.
Strengthening the prevention and response capabilities of financial companies will proceed in parallel. Dedicated personnel and facilities will be mandated, and an AI platform will be built to share and utilize suspected voice phishing information. System improvements will also be pursued to allow refunds even when the damage funds are hidden in virtual assets.
The level of criminal punishment will also be raised. For multi-victim fraud, the statutory penalty for fraud will be increased, and the confiscation and collection of criminal proceeds will be made mandatory by rule. A compulsory investigation provision will also be introduced to presume assets acquired during the crime period as criminal proceeds, enabling confiscation and collection.
Alongside this, the government will establish an integrated, pan-government response system. It will expand and reorganize the existing integrated reporting center into an "integrated response unit" and set up an organic cooperation system across finance, telecommunications, and investigation. A dedicated task force led by the Director General of the National Office of Investigation will be launched, and 400 investigative personnel will be additionally assigned to provincial and metropolitan police agencies nationwide to carry out intensive crackdowns on voice phishing and the provision of means for the crimes through Feb. of next year.
Technology-based blocking measures will also be strengthened. A three-layer defense system will be established to filter spam texts and malicious apps in advance, and a system will be introduced that automatically detects suspicious calls and sends warning messages. Mobile carriers' responsibility for managing illegal activations will also be greatly strengthened. In addition, the use of public and private data will be expanded to promote the development of AI-based blocking technologies.
To back these measures, the party will pursue a wide range of legislative tasks. It plans to handle during the regular National Assembly session: ▲ the Telecommunications Financial Fraud Damage Prevention Act (introduction of no-fault compensation liability) ▲ the Personal Information Protection Act (special exceptions for the use of personal information for AI development) ▲ the Criminal Act (raising the statutory penalty for fraud) ▲ the Act on the Confiscation of Corruption Proceeds (strengthening the recovery of criminal proceeds) ▲ the Telecommunications Business Act (termination of contracts with illegal activation dealers, cancellation of carrier registrations and business suspensions).
Han Jeong-ae, the Democratic Party's policy committee chair, said in opening remarks at the meeting, "Voice phishing is a disaster that drives people's lives into despair with a single phone call," adding, "We will provide legal and institutional support with speed and examine matters meticulously so that people can tangibly feel that voice phishing crimes have clearly decreased."