Lawmaker Kim Nam-kuk in South Korea could face 6 months in prison for allegedly failing to fully declare 9.9 billion won (equivalent to 7.4 million USD currently) in cryptocurrency assets, raising controversy over the transparency of officials' assets.
A South Korean lawmaker is facing a 6-month prison sentence for allegedly failing to fully declare his cryptocurrency assets, according to information from Dong-A Ilbo on December 18. The case revolves around Mr. Kim Nam-kuk, a former member of the Democratic Party, who is accused of falsely declaring assets of only 1.2 billion won (equivalent to 834,356 USD at the time the original article was published) in 2021, while actually owning cryptocurrency worth 9.9 billion won.
Mr. Kim is also accused of concealing an additional 990 million won in cryptocurrency in 2022. Prosecutors in Seoul have recommended a 6-month prison sentence for Mr. Kim for this action.
The accusations against Mr. Kim focus on his obstruction of the asset evaluation process of the National Assembly's Ethics Committee by making false declarations. The failure to disclose all cryptocurrency assets is considered a serious violation, as holding these assets could lead to conflicts of interest for elected officials. South Korean law requires officials to disclose their assets to ensure transparency and avoid potential conflicts of interest.
Controversy surrounding cryptocurrency sell-offs and tax laws
The case is further complicated by earlier accusations that Mr. Kim sold a large amount of cryptocurrency worth millions of USD just before South Korea implemented the FATF's Travel Rule regulations. This regulation aims to enhance oversight of cryptocurrency transactions and has raised concerns about officials potentially exploiting insider information for profit.
Mr. Kim denies these allegations, claiming that he merely transferred the money to another exchange and has no obligation to report to the government.
Notably, Mr. Kim, after taking office in 2020, participated in the process of building laws related to digital assets. He was one of the supporters of the Democratic Party's proposal to delay the implementation of a 20% tax on profits from cryptocurrency.
Initially, this tax was set to be implemented in 2023 but was later postponed to 2025, and most recently, the National Assembly approved an additional 2-year extension to 2027. Mr. Kim's involvement in this legislative process while simultaneously being accused of concealing cryptocurrency assets has raised many questions about his objectivity and ethics.