Prosecutors seek six-month sentence for South Korean lawmaker

South Korean prosecutors are seeking a six-month prison sentence for Kim Nam-kuk, a member of the National Assembly, over accusations of failing to fully report his cryptocurrency holdings.

The prosecutors claim that Kim intentionally concealed his crypto assets, thereby obstructing the National Assembly Ethics Committee’s investigation into his financial disclosures.

Kim declared total assets amounting to 1.2 billion Korean won (approximately $834,356) in 2021.

However, he allegedly owned 9.9 billion won worth of digital assets at the time and did not report an additional 990 million won worth of crypto holdings in 2022.

Prosecutors argue that such actions may have created a conflict of interest, as undisclosed assets could influence an elected official’s decisions.

Kim’s departure from the Democratic Party in 2023 followed allegations that he had cashed out millions of dollars in cryptocurrency before South Korea implemented the Financial Action Task Force’s Travel Rule.

He contended that the assets were transferred to another exchange, and he was not obligated to declare them.

Kim, who assumed office in 2020, had some authority over digital asset-related legislation, including a proposal to delay the implementation of a 20% tax on crypto gains.

In December 2023, the National Assembly voted to delay the tax policy until 2027.

Despite the ongoing trial, Kim’s legal issues have been overshadowed by political unrest in South Korea.

President Yoon Suk Yeol’s declaration of martial law on Dec. 3 led to a chaotic response from lawmakers, resulting in a vote on Dec. 14 that saw the National Assembly impeach the president.

The Constitutional Court of Korea will review the impeachment decision within 180 days, which could determine whether the president will be removed from office.