TLDR
- Kim Byung-kee is facing scrutiny after reports linked his son’s hiring at Bithumb to political pressure on rival exchange Upbit.
- The lawmaker allegedly instructed his staff to criticize Dunamu during discussions of a major acquisition by Naver.
- Kim holds a position on the National Assembly’s Political Affairs Committee which oversees financial institutions.
- He denied any involvement in his son’s hiring and stated that his legislative work remains independent.
- Bithumb stated that its recruitment process was conducted fairly and followed transparent procedures.
A senior lawmaker in South Korea is under scrutiny following allegations he pressured a crypto rival after his son’s hiring. Kim Byung-kee, floor leader of the Democratic Party, allegedly targeted Dunamu while seeking employment for his son at Bithumb. The case has raised questions about possible conflicts of interest involving South Korea’s National Assembly.
Kim Linked to Hiring and Policy Push
Kim allegedly tried to help his son get a job at Bithumb, one of South Korea’s leading cryptocurrency exchanges. While doing so, he reportedly pushed criticism against rival exchange Upbit, operated by Dunamu. Kyunghyang Shinmun reported that Kim directed aides to attack Dunamu over monopoly issues.
The report ties these actions to Naver’s $10 billion deal to acquire Dunamu in November. Kim is a member of the National Assembly’s Political Affairs Committee, which oversees financial regulation. This raised concerns given the timing and nature of his committee responsibilities.
Kim denied wrongdoing and insisted his son’s hiring had no connection to his legislative work.
“The company’s hiring of my son is unrelated to my duties,” Kim told the news outlet.
He expressed regret over the situation being tied to his official activities.
Dunamu Acquisition Sparks Political Pressure
The alleged pressure came after Naver’s agreement to buy Dunamu, which operates Upbit, South Korea’s largest crypto exchange. The deal, pending regulatory review, could reshape the crypto sector in South Korea. Lawmakers including Kim raised questions about market monopoly following the announcement.
Reports say Kim targeted Dunamu while lobbying Bithumb to hire his son. The move raised ethical questions due to his legislative role. Critics argue the situation reflects broader issues with transparency in South Korea’s policymaking.
Bithumb has denied any inappropriate hiring practices or external influence. A spokesperson said, “Recruitment was conducted transparently, openly, and fairly.” They added that concerns about monopolies have been discussed in South Korea since 2021.
Lawmaker’s Role Fuels Conflict Concerns
As part of the committee that oversees financial institutions, Kim holds influence over crypto-related regulatory matters. His dual role in legislation and family ties to Bithumb has fueled conflict-of-interest claims. Calls for an investigation have grown in South Korea’s political circles.
The lawmaker maintains that he followed all protocols. He emphasized that his son’s recruitment followed open procedures with no political involvement. “Linking my National Assembly duties with this is regrettable,” he stated.
Upbit has not commented publicly on the allegations or any political pressure. The company remains central to South Korea’s crypto trading market. Dunamu’s deal with Naver still awaits final approval from regulatory authorities.
Regulation Delays Add Pressure
South Korea’s regulatory framework for stablecoins remains unresolved as officials delay decisions on bank involvement. Talks stalled in November between the Bank of Korea and other regulators. This has further slowed progress on cryptocurrency oversight.
While the United States passed a bill in July regulating payment stablecoins, South Korea continues to work on its version. A new draft bill is expected from the ruling party in January. The bill comes after missing an earlier deadline for regulatory clarity.
Lawmakers are expected to debate the draft in the coming weeks. Crypto firms in South Korea are closely monitoring these developments. The Bithumb hiring controversy adds urgency to the regulatory conversation.
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