South Korean Parliament Rejects Motion to Expel Lawmaker Amid Crypto Scandal Controversy

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Key takeaways:

  • The parliamentary ethics subcommittee of South Korea rejected a motion to dismiss Kim Nam-kuk.
  • The panel rejected the plan after a 3-3 tie vote between the DP and the ruling PPP.

A motion to dismiss Kim Nam-kuk was rejected by the parliamentary ethics subcommittee of South Korea.

South Korea’s parliamentary ethics panel rejected a motion to expel Kim Nam-kuk, a former member of the main opposition Democratic Party (DP), according to a report from the local news source Yonhap on August 30.

On August 29, after a 3-3 tie vote between the DP and the ruling People Power Party (PPP), the panel rejected the plan. The report states that in order for the motion to pass, there had to be a majority of votes.

As was previously mentioned, Kim came under criticism earlier this year when it was discovered that he had once owned Wemix (WEMIX) tokens, created by the South Korean blockchain game developer Wemade, for at least $4.5 million. Prior to being ordered to be delisted from the platforms in late 2022 by a local judge, Wemix coins were permitted for trading on South Korea’s major exchanges.

Significant worries were raised about possible conflicts of interest, the use of insider knowledge, and even money laundering as a result of Kim’s involvement in WEMIX ventures. The case helped hasten the rapid emergence of a legal effort in South Korea that mandates authorities to disclose their holdings of cryptocurrencies like Bitcoin.

There are other officials who are being requested to report on their bitcoin holdings in the nation besides those in South Korea. The Financial Services Commission of South Korea unveiled in July a new measure that, starting in 2024, will force all companies that produce or hold cryptocurrencies to report their holdings.

The South Korean city of Cheongju also announced in the middle of August that it will begin seizing cryptocurrencies from local tax evaders, requiring exchanges like Upbit and Bithumb to report on such offenders.

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