Leaving the 'God's Workplace' for the 'Crypto Scene'... Talent Rush Exodus from the Financial Sector

First KSD Executive Moves to Virtual Asset Industry

A case has emerged of an employee leaving the Korea Securities Depository—often called the 'God's Workplace'—for the virtual asset industry. Amid the anticipation of virtual assets being included in the institutional financial system, a 'rush exodus' from traditional financial sectors continues.

According to the financial investment industry on the 24th, Seong-Il Cho, previously a director at Korea Securities Depository, started serving as the CEO of 'Korea Digital Asset Custody' (K-DOC·KDAC), a virtual asset custody company, as of the previous day. This marks the first such case of a move from the Korea Securities Depository to the virtual asset sector.

KDAC is a company funded by two commercial banks: Shinhan Bank and NH Nonghyup Bank. Virtual asset custody refers to a service that securely stores assets such as Bitcoin and Ethereum on behalf of corporations and institutions.

Until recently, Director Cho had led the Next KSD Taskforce at the Korea Securities Depository, overseeing the development of a token securities testbed platform. K-DOC brought in Director Cho, who has institutional infrastructure design experience, to adapt to changing business environments such as allowing institutional investment and launching spot ETFs.

In recent years, the virtual asset industry has been actively recruiting personnel with experience in the institutional sector. In the industry, this is viewed largely as a strategy to reduce regulatory inspection and sanction risks and to accelerate business development through strong government relations. For those switching jobs, high salaries and rapid market growth are attractive factors.

In March of this year, two team leaders (grade 3) from the Financial Supervisory Service both changed jobs to become managing directors at the domestic virtual asset exchange 'Bithumb,' drawing public attention. Formerly team leaders with the Bank Examination Department and Insurance Examination Department, they were appointed as compliance officer and head of audit.

With the virtual asset market’s imminent integration into the institutional system, demand is rising for talent with experience at financial institutions. Within the ruling Democratic Party of Korea, there are ongoing active discussions toward introducing the market's first dedicated industry law, focusing on the introduction of stablecoins and the establishment of standards for listing and trading support.

A representative from a virtual asset exchange remarked, "The drive to absorb the experience, knowledge, and systems of traditional financial institutions will likely become even stronger for the time being."

Reporter Min-Kyung Shin, Hankyung.com radio@hankyung.com