South Korea to probe local CEX fees in a bid to lower crypto trading cost burden

South Korea’s FSC will conduct an investigation into transaction fees charged by local crypto exchanges, marking the first concrete step toward President Lee Jae-myung’s pledge to ease cost burdens for young traders.

On June 19, South Korea’s Financial Services Commission announced plans to conduct a fact-finding investigation into transaction fees charged by domestic crypto exchanges, as initially reported the Herald Economy.

In a policy briefing to the Presidential Transition Committee, the FSC stated it would examine the current fee structures, methods of fee collection, and revenue from transaction fees at major exchanges such as Bithumb, Upbit, and Coinone.

The goal is to evaluate whether current fees pose an excessive burden on consumers and consider appropriate regulatory measures. While the FSC has not set a specific target rate, it will consider global benchmarks and user impact studies in shaping its policy.

The investigation will also review whether exchanges transparently disclose their fee structures.

The move follows President Lee’s earlier campaign pledge to reduce cryptocurrency transaction fees from the current average of 0.05% to approximately 0.015%, aiming to support young traders.

In addition to reducing transaction fees, President Lee pledged to legalize spot crypto exchange-traded funds. His ETF proposal received rare bipartisan support, with both his opponent Moon-soo and the People Power Party backing the move. Both parties have committed to legalizing spot Bitcoin (BTC) ETFs within the year.

Additionally, Lee proposed allowing the nation’s $884 billion pension fund to invest in cryptocurrencies.