Korea's anti-corruption agency says lawmaker traded over $85M of crypto

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Korea's anti-corruption agency says lawmaker traded over $85M of crypto

Published: 29 Dec. 2023, 19:53 Updated: 29 Dec. 2023, 19:55

CHO JUNG-WOO
cho.jungwoo1@joongang.co.kr

Independent lawmaker Kim Nam-kuk attends a meeting of the parliamentary ethics committee on Aug. 17 at the National Assembly in Yeouido, western Seoul. [NEWS1]

Independent Rep. Kim Nam-kuk, a former Democratic Party lawmaker who has been at the center of controversy over his cryptocurrency investments, was found to have purchased and sold over 111 billion won ($85 million) worth of cryptocurrency over three years.

The Anti-Corruption & Civil Rights Commission (ACRC) on Friday announced the results of the investigation that looked into transactions of crypto assets made by lawmakers in Korea from May 30, 2020, to May 31, 2023. The investigation, which launched on Sept. 18, came after Kim’s controversial investments in such assets surfaced, ultimately leading him to exit his old party in May.

He stressed his innocence as he left the party, saying he would “unveil the truth while fighting against unfair political attacks.”

The lawmaker is also accused of having transacted cryptocurrencies during the nomination hearing of former Justice Minister Han Dong-hoon in May last year.

Kim, who was elected during the general election in April 2020, reported his increasing assets to the parliament, including savings and bonds, which rose from around 1.1 billion won in 2021 to 1.2 billion won in 2022 and 1.5 billion won in 2023. The registered amount does not include cryptocurrencies owned by him, as the Public Service Ethics Act at the time did not force lawmakers to report on the possession of crypto assets.

However, the ACRC’s investigation revealed on Friday that the independent lawmaker purchased a total of 55.5 billion won and offloaded 56.3 billion won worth of cryptocurrencies over three years. This is the first time that Kim’s cryptocurrency transactions were revealed to the public.

His total transactions of crypto assets accounted for almost 90 percent of the total amount purchased and sold by every lawmaker in Korea during the same period.

Chung Seung-yun, vice chairperson of the Anti-Corruption and Civil Rights Commission (ACRC), speaks during a press briefing at Government Complex Sejong on Friday. [ANTI-CORRUPTION & CIVIL RIGHTS COMMISSION]

The ACRC said that a total of 11 lawmakers, including Kim, purchased 62.5 billion won and sold 63.1 billion won during the same period. A total of 18 lawmakers possessed crypto assets, accounting for 6 percent of the total 298 lawmakers.

The ACRC added that 10 lawmakers have not properly reported their cryptocurrency transactions. Per the National Assembly Act, amended in June, lawmakers are now obliged to report their crypto assets. Their crypto holdings will be publicly disclosed in February.

The names of the other 17 lawmakers who possessed crypto assets were not revealed on Friday.

Chung Seung-yun, vice chairperson of the ACRC, who announced the results during a press briefing held at Government Complex Sejong on Friday, said the ACRC only decided to disclose the name of Kim as his case was already “publicly known.”

The different cryptocurrencies owned by these lawmakers varied: the number of different types increased from 24 in 2020 to 107 in 2023. Bitcoin was the most popular crypto asset among them, the ACRC said.

Experts argue that the ACRC’s investigation lacks comprehensiveness, as it excluded the possession and transaction of crypto assets of lawmakers’ family members, including their spouses and children. An attorney who worked as a high-ranking prosecutor raised the possibility of lawmakers using their family members’ names to make investments, in speaking with the JoongAng Ilbo.

The ACRC has been unable to conduct further probes due to its limitations in launching such investigations. An official at the ACRC said the commission can only begin an investigation when reports on corruption are filed, adding that it called for the parliament to draw up measures to ensure lawmakers accurately report their crypto assets.

BY CHO JUNG-WOO, PARK TAE-IN [cho.jungwoo1@joongang.co.kr]