SK Politician Accused of Going After Exchange Amid Conflict of Interest

Kim Byung-kee, floor leader of South Korea’s Democratic Party, is facing scrutiny following a report alleging that he sought to pressure Dunamu, the operator of cryptocurrency exchange Upbit, after his son secured a position at a competitor.

According to a Sunday report by news outlet Kyunghyang Shinmun, Kim, a member of the South Korean National Assembly’s Political Affairs Committee, allegedly tried to secure a job for one of his sons at crypto exchange Bithumb while simultaneously raising concerns in the National Assembly about Upbit, a competitor crypto exchange operated by Dunamu.

The report claims that Kim instructed his staff to “attack Dunamu” as part of monopoly concerns after South Korean giant Naver agreed in November to acquire the company in a $10 billion deal. The merger would likely still be subject to regulatory approval.

Kim’s position in a committee overseeing financial institutions has raised concerns about conflicts of interest, the report says. The lawmaker has denied any wrongdoing.

“The company’s work, including hiring [my son], has absolutely nothing to do with me, and it is deeply regrettable that my legislative activities are being linked to my son’s employment through open recruitment,” the news outlet cited Kim as saying.

https://www.youtube.com/watch?v=UtcU34rcn50

A Bithumb spokesperson said recruitment at the company was “conducted transparently, openly, and fairly,” according to the report. They added that addressing monopolies in the crypto market was a “pressing” issue for policymakers that had been raised since 2021.

Related: South Korean crypto emerges from failed coup into crackdown season

South Korean government is still working on a stablecoin framework

Unlike in the US, which passed a comprehensive bill to regulate payment stablecoins in July, regulators and the Bank of Korea stalled on talks in November over the banks’ role in issuing won-backed stablecoins.

The ruling party is expected to unveil a different draft bill in January after missing a crucial regulatory deadline.