South Korea’s Financial Services Commission (FSC) has denied reports that it launched a formal investigation into transaction fees charged by major cryptocurrency exchanges. The clarification came on June 20, 2025, one day after reports linked the alleged investigation to President Lee Jae-myung’s campaign pledge to reduce digital asset trading costs.
The original report, published by Herald Economy, claimed that the FSC would examine fee structures at Upbit, Bithumb, and Coinone. It said the review would cover fee rates, charging methods, and the amounts collected from users.
However, the FSC’s official clarification stated that reports of a planned investigation into exchange fee levels were inaccurate. This means the reported probe should not be presented as a confirmed government action.
SOUTH KOREA LAUNCHES PROBE INTO CRYPTO EXCHANGE FEES
Regulators to investigate high transaction fees charged by local digital asset exchanges.
President Lee Jae-myung promised fee reductions during his campaign.
Scrutiny comes amid growing retail participation and market…
— CryptoEdge (@EdGeraldX) June 19, 2025
Lee’s fee-cutting pledge remains unfulfilled
During his presidential campaign, Lee pledged to reduce virtual asset transaction fees from approximately 0.05% to 0.015%. The proposed reduction was aimed at lowering trading costs for retail investors, including younger South Koreans who have shown strong interest in cryptocurrency markets.
A cut of that size would affect how much traders pay each time they buy or sell digital assets. For frequent traders, lower fees could reduce cumulative costs. However, the effect would depend on which fees are ultimately covered, whether exchanges pass on the savings, and how trading platforms adjust their pricing.
The FSC’s denial leaves the status of any official fee-reduction process unclear. No confirmed investigation, fee cap, or implementation timetable was established by the clarification.
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Exchange competition and regulation
South Korea’s major exchanges operate in a market where trading fees are one part of the competition for users. Platforms may use different pricing structures, discounts, and promotional offers, making direct comparisons difficult.
A proper assessment would need to distinguish advertised fees from the amounts users actually pay. It would also need to examine how fee revenue relates to trading volume, platform operations, and consumer services.
The fee debate is taking place alongside wider efforts to develop South Korea’s digital asset framework. The country has already introduced rules for virtual asset user protection, while lawmakers have also discussed legislation covering stablecoins and digital asset businesses.
In June 2025, the Democratic Party proposed a digital asset bill that included provisions related to stablecoin issuance by local firms. These developments show that fee policy is only one part of the country’s wider crypto regulatory agenda.
What to watch next
The next important development will be whether South Korean authorities formally announce a fee review, publish comparative data, or propose specific pricing rules. Until then, the reported investigation remains unconfirmed, and the timeline for Lee’s fee-reduction pledge is uncertain.
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