South Korean lawmaker Kim Nam-kuk has been acquitted of charges related to concealing cryptocurrency holdings. The court ruled that he was not legally required to disclose his virtual assets under the country’s laws at the time.
Court Dismisses Charges Against Kim Nam-kuk
On February 10, Chosun Daily reported that Judge Jeong Woo-Yong of the 9th Criminal Division of the Southern Seoul District Court ruled in favor of Kim, stating that he did not obstruct public duty by deceit.
Kim was accused of liquidating his crypto assets and failing to report approximately $4.5 million in profits before South Korea implemented the Financial Action Task Force’s (FATF) “Travel Rule,” which mandates the disclosure of crypto holdings.
The controversy surrounding the case prompted Kim to leave the Democratic Party, stating that he wanted to relieve party members from any burden caused by the lawsuit.
Prosecutors Alleged Intentional Concealment
Prosecutors claimed that Kim deliberately hid his crypto holdings to interfere with the National Assembly’s Ethics Committee’s financial disclosure review.
In December 2024, they sought a six-month prison sentence, alleging that Kim reported his total assets as 1.2 billion won ($834,000) in 2021 while actually holding nearly 9.9 billion won ($6.8 million) in cryptocurrency. They argued that these undisclosed holdings could pose a conflict of interest and obstruct the Ethics Committee’s review.
However, the court ruled that at the time, South Korea’s Public Service Ethics Act did not require lawmakers to disclose virtual assets. Judge Jeong stated that there was no clear evidence proving that Kim intentionally deceived the Ethics Committee. The ruling concluded that the case lacked criminal evidence.
Future Legal Challenges and Ethical Questions
Although Kim has been acquitted, prosecutors may still appeal the decision in a higher court.
As a National Assembly member, Kim had influence over digital asset regulations. He previously supported a proposal to delay a 20% tax on crypto gains. Critics have raised concerns about whether his personal crypto holdings created a conflict of interest, though he has consistently denied any wrongdoing.
