Ethics committee defers decision on lawmaker over crypto allegations

Independent lawmaker Kim Nam-kuk takes a lift at the National Assembly in Yeouido, western Seoul, after attending a meeting of the parliamentary ethics committee last Thursday. [NEWS1]

The National Assembly’s Special Committee on Ethics on Tuesday postponed its disciplinary decision against former Democratic Party (DP) lawmaker Kim Nam-kuk for alleged dirty cryptocurrency dealings after he announced he will not seek reelection in next year's general elections.

The parliamentary ethics committee was expected to decide on punitive measures against Kim during a meeting held Tuesday but decided to defer the decision until Wednesday.

The meeting kicked off at 11 a.m. but had to be resumed in the afternoon after the liberal DP proposed postponing the decision followed by Kim's announcement that he will not run for a second term regardless of the ethics committee's decision.

“My heart is heavy for disappointing the voters of Danwon District in Ansan who gave a young politician, a mere politics rookie, a chance to work in the parliament,” Kim wrote.

“I desperately hope that I will be able to take full responsibility until my term ends for the sake of Ansan citizens who have supported me so far.”

DP Rep. Song Ki-hun, the party’s senior deputy floor leader, told the reporters that the committee must ponder how much Kim’s announcement will affect the disciplinary decision.

An advisory panel last month recommended expelling Kim from parliament, the heaviest penalty it could slap on him.

Asked if the DP will lighten the punishment against Kim, Song said he couldn't make predictions, adding that some lawmakers felt expelling him would be too harsh.

People Power Party (PPP) Rep. Lee Yang-su, who represents his party in the parliamentary ethics committee, told reporters that he does not understand why the DP thinks Kim’s announcement should affect the disciplinary decision.

He added that Kim would not get a pass for what he's done just because he's not seeking reelection.

However, Lee ultimately decided to accept the DP’s request.

“We tried to come to a conclusion regarding the case as it has grown protracted but decided to accept Song’s polite request for additional time,” Lee said.

Kim left the DP on May 14 after it was revealed that he formerly owned 6 billion won ($4.5 million) worth of Wemix cryptocurrency tokens issued by the game publisher Wemade.

Kim bought most of his Wemix early last year and sold it all off a month later, just days before Korea adopted a so-called “travel rule” that requires cryptocurrency platforms to retain and share information with financial regulators about the senders and recipients of cryptocurrency transfers exceeding 1 million won in value.

While Kim claimed he had not violated any laws by conducting cryptocurrency transactions, he previously co-sponsored a bill to delay the taxation of virtual assets, giving rise to allegations that he faced a conflict of interest as a lawmaker who owned cryptocurrencies.

BY CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]