(LEAD) Inspection shows massive cryptocurrency trading by Rep. Kim Nam-kuk

▲ Acting Chairman Jeong Seung-yoon of the Anti-Corruption and Civil Rights Commission speaks in a press briefing at the government complex in Sejong on Dec. 29, 2023. (Yonhap)

(LEAD) lawmakers-virtual assets

(LEAD) Inspection shows massive cryptocurrency trading by Rep. Kim Nam-kuk

(ATTN: UPDATES with more info throughout)

By Kim Han-joo

SEOUL, Dec. 29 (Yonhap) -- The Anti-Corruption and Civil Rights Commission said Friday that lawmakers had conducted virtual asset transactions totaling over 125.6 billion won (US$97.6 million) over the past three years, with Rep. Kim Nam-kuk alone trading nearly 90 percent of the total amount.

The agency conducted a 90-day inspection into virtual asset transaction records of all 298 sitting lawmakers between May 30, 2020, and May 31, 2023, after questions arose earlier this year over Kim's once-massive coin holdings.

Kim is now an independent after leaving the main opposition Democratic Party at the time.

According to the results, 18 lawmakers have records of virtual asset possession during the period and 11 of them actually traded virtual assets during the period, with the accumulated buying and selling amounts reaching 62.5 billion won and 63.1 billion won, respectively.

Notably, Kim bought and sold virtual assets worth 55.5 billion won and 56.3 billion won, suggesting a net profit of around 800 million won, according to the inspection findings. The volume of his trading amounted to nearly 90 percent of the total.

Of all lawmakers involved, only Kim was disclosed.

Among the 10 lawmakers, the biggest net profit was recorded at 83 million won, and the biggest loss was at 150 million won.

Lawmakers collectively held 107 types of virtual assets, with Bitcoin being the most popular choice.

The inspection also revealed discrepancies in the holdings and transaction records of 10 lawmakers compared to what they voluntarily declared earlier this year. The National Assembly passed two bills mandating that lawmakers and high-level government officials declare their virtual assets.

One lawmaker, whose identity was withheld, conducted 49 transactions through the cryptocurrency exchange Bithumb but did not report them to the National Assembly. The lawmaker later claimed that his Bithumb account was closed at the time of the report.

The inspection also showed that changes happened in the virtual asset holdings of three lawmakers when they were attending standing committee meetings deliberating bills related to virtual assets.

The commission said, however, that the coin-related activities of the three did not violate the conflict of interest prevention law governing lawmakers, since the related bills on virtual assets are governing random subjects not an individual.

Despite the findings, there are some limits, as the scope of investigation did not cover the asset holdings of family members of the lawmakers and transactions through overseas cryptocurrency exchanges.

The commission said some lawmakers' receipt and withdrawal records regarding virtual assets were unclear, and there was a need for additional checking. However, due to the limitations of investigative authority, it was challenging to do so.

The agency has recommended the National Assembly establish a parliamentary rule mandating lawmakers to report their virtual asset holdings before the commencement of a new National Assembly that will begin its term after the April 10 general elections.

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