South Korean Politician Faces Conflict of Interest Allegations in Crypto Sector

A Lawmaker Under Public Scrutiny

Kim Byung-kee, the leader of the parliamentary group of the Democratic Party in South Korea, is facing suspicions following reports that he attempted to influence the operations of Dunamu, the operator of the cryptocurrency exchange Upbit, after his son secured a position at a competitor. According to a report published by Kyunghyang Shinmun, Kim, a member of the National Assembly's Political Affairs Committee, allegedly requested a position for his son at Bithumb while simultaneously raising concerns in the National Assembly regarding Upbit.

The report states that Kim instructed his employees to “attack Dunamu” due to concerns over monopoly, after the South Korean giant Naver agreed in November to acquire the company for $10 billion. The merger is likely to be subject to regulatory approval. Kim's position on a committee that oversees financial institutions has raised concerns about potential conflicts of interest, the report continues.

The lawmaker denied any wrongdoing, stating: “The company's activities, including the hiring [of my son], have absolutely nothing to do with me, and it is deeply regrettable that my legislative activities are being linked to my son's hiring through open recruitment.” A spokesperson from Bithumb asserted that the hiring process within the company was “conducted transparently, openly, and fairly,” adding that addressing monopoly issues in the crypto market has been an “urgent” matter for decision-makers since 2021.