KOTEC gains access to debtors’ virtual-asset data

  • National Assembly passed Kang Seung-gyu’s amendment to the KOTEC Act.
  • The bill passed with 264 votes in favor, one abstention and 265 members present.
  • KOTEC may request data from virtual asset business operators and obtain specified tax information.

South Korea’s National Assembly approved a partial amendment to the Korea Technology Finance Corporation Act on September 3, with 264 votes in favor, one abstention and 265 members present. Proposed by People Power Party Rep. Kang Seung-gyu, the bill allows the Korea Technology Finance Corporation (KOTEC) to request debtors’ asset data from virtual asset business operators and clarifies the national and local tax information it may obtain. KOTEC guarantees monetary debts for technology-focused small and medium-sized enterprises, venture firms and startups with limited collateral. When it pays a lender after a default, it exercises subrogation rights to recover the funds. The changes address concerns that KOTEC’s subrogation recovery performance had reached a historic low even as guarantee balances increased, with virtual assets making hidden holdings harder to identify. Kang said recovered funds could be reinvested into guarantees, strengthening KOTEC’s financial foundation and support for innovative companies.

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