South Korea to Process Account Freeze Appeals Within 5 Business Days

The Financial Supervisory Service (FSS) has announced a crucial procedural update designed to protect victims of voice phishing and related scams. Previously, individuals whose accounts were frozen due to suspected involvement in voice phishing faced lengthy delays in appealing the decision, often enduring months of restricted financial activity. This new five-business-day processing limit for appeals is a significant step towards alleviating the hardship faced by these victims.

The scams, including "account locking" where perpetrators demand payment to unfreeze accounts, and "account blackmail" where a single won is sent to trigger a freeze, exploit the very system designed to prevent financial crime. The FSS's move acknowledges the need for a more responsive system that doesn't further penalize innocent individuals caught in these fraudulent schemes.

While the FSS aims to streamline the process by accepting minimal common documentation, they retain the right to request additional information, recognizing the potential for AI-driven manipulation of evidence. Furthermore, for minor deposit amounts, no prior freezing history, and clear evidence of funds being used for living expenses, the freeze will be lifted promptly on the remaining balance. This nuanced approach reflects the complexity of financial fraud cases while prioritizing the swift relief of victims.

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We will expand the application to other financial sectors as soon as possible.