Kim Nam-kuk, a South Korean National Assembly member, is potentially facing a six-month prison sentence. Prosecutors are alleging that Kim did not fully disclose his cryptocurrency holdings to the authorities. A December 18 report from South Korean news source Dong-A Ilbo contended that prosecutors have called for a half-year term for Kim. The lawmaker, currently under trial in Seoul, is said to have falsely reported his total assets as 1.2 billion Korean won (approximately $834,356) in 2021, not considering his actual digital assets worth 9.9 billion.
According to the prosecutors, Kim effectively sabotaged the review of a National Assembly member’s assets by the National Assembly Ethics Committee. He achieved this by concealing the true extent of his cryptocurrency holdings. This obfuscation can lead to possible conflicts of interest for individuals in official positions.
Kim had exited the Democratic Party in 2023 following allegations that he had exchanged his cryptocurrency holdings for millions of dollars ahead of the Financial Action Task Force’s Travel Rule being instated by South Korea. Kim allegedly contended that he had moved the funds to a different exchange, and was also under no obligation to declare these assets to the authorities.
Impressively, Kim held a significant position in overseeing digital assets-related laws since taking office in 2020. This includes legislation proposed by the Democratic Party to defer a 20% tax on crypto gains from 2023 to 2025. A subsequent delay was agreed upon on December 1, pushing the policy’s implementation back to 2027.
However, Kim’s trial has been dwarfed by the political uproar in South Korean politics following President Yoon Suk Yeol’s Dec. 3 declaration of martial law without apparent warning to allies. This led to a vote for his impeachment by the National Assembly, with 204 out of 300 members supporting the motion on December 14th. Yoon’s removal from office is still pending, as the Constitutional Court of Korea will take 180 days for review. In reaction to this, the leader of the People Power Party, Han Dong-hoon, announced on December 16th he would step down as well.