[Alpha Biz= Paul Lee] SEOUL, South Korea — A growing number of retirees from the Financial Supervisory Service (FSS), South Korea’s top financial watchdog, are increasingly joining digital asset exchanges. Data suggests a notable shift in the preferred post-retirement destinations for these officials, moving away from traditional law firms toward the burgeoning virtual asset industry.
According to data on re-employment status over the past five years—submitted by the Financial Services Commission (FSC) and the FSS to the office of Representative Park Sang-hyuk of the Democratic Party—a total of eight FSS retirees (Level 4 and above) have joined the digital asset sector as of November 2025.
The trend marks a sharp increase compared to previous years. The number of FSS retirees moving to the crypto industry stood at one in 2021, two in 2022, and zero in 2023. However, the figure jumped to five last year and reached a record high of eight this year. Over the past five years, a total of 16 former FSS officials have been recruited by major exchanges: Dunamu (9) and Bithumb (7).
In contrast, the long-standing tradition of FSS officials moving to major law firms is on the decline. While 13 to 14 officials joined law firms annually between 2021 and 2023, the number dropped to seven last year and nine this year. Consequently, the gap between those joining law firms and those joining the digital asset industry has narrowed to just one person this year.
Experts attribute this migration to the ongoing institutionalization of the digital asset market. Following the implementation of the Virtual Asset User Protection Act last July, discussions regarding the "Digital Asset Basic Act" (Phase 2 legislation) concerning stablecoins are currently underway.
As regulatory oversight of the digital asset industry rises to match the standards of traditional financial institutions, exchanges are aggressively recruiting FSS veterans to strengthen internal control systems and manage regulatory risks.
Under the Public Service Ethics Act, officials at Level 4 or higher are generally prohibited from working for private firms closely related to their previous departments for three years post-retirement. However, the Government Public Ethics Committee can grant exceptions if it determines there is no direct conflict of interest or if the move is justified by the individual’s expertise and public interest. Although FSS employees are not civil servants, they are classified as employees of "public-service related organizations" and are subject to these stringent ethics reviews.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
