Anti-corruption agency set to investigate crypto assets of lawmakers

Korea’s state-run anti-corruption watchdog said Tuesday that it is willing to look into the crypto assets of all lawmakers, after independent Rep. Kim Nam-kuk triggered controversy for dubious cryptocurrency transactions.

Anti-Corruption & Civil Rights Commission (ACRC) Chairperson Jeon Hyun-heui urged lawmakers to consent to disclose their personal information related to crypto assets in order to facilitate the inspection.

Last week, the National Assembly passed a motion proposing that the ACRC investigate virtual assets held by lawmakers and high-ranking government officials, after Kim, formerly a main opposition Democratic Party of Korea (DPK) lawmaker, was found to possess a massive amount of coins, triggering a public uproar over conflicts of interest and raising questions regarding the source of the funds. Kim was a member of a National Assembly committee setting regulations governing cryptocurrency exchanges.

Jeon, a former DPK lawmaker, promised a fair investigation and called on lawmakers to show “sincerity by agreeing to provide their personal information.”

She held an unscheduled press conference at Government Complex Seoul Tuesday and announced the ACRC’s investigation plan.

“To respond to the public’s calls that those serving in official positions should not pursue individual profit, the ACRC will proactively investigate all lawmakers’ virtual assets,” Jeon said, referring to the motion.

“However, for this proposal to be sincere, we need the consent of lawmakers on the collection of personal information,” she said. “Virtual assets are characterized by strong measures to protect identities and ensure confidentiality. Even if the ACRC launches an investigation into these assets, accessing relevant information is, in fact, quite challenging.”

The Assembly, on Thursday, unanimously passed a revision to the Public Service Ethics Act, requiring top government officials and lawmakers to report all of their virtual assets in their annual asset disclosures. At present, conventional assets such as bonds, cash, gold and jewelry have to be declared, but not digital assets. The lawmakers also passed a motion proposing that the ACRC investigate all of the virtual assets belonging to lawmakers.

The revision came following revelations that Rep. Kim owned around 800,000 Wemix coins in 2021, worth around 6 billion won ($4.5 million) at the time. This triggered controversy over how he managed to secure those assets and cast doubts about his reputation. The lawmaker had portrayed himself as a humble and frugal person. Kim officially left the DPK following the controversy earlier this month.

The investigation plan announced by the ACRC chief, however, has faced skepticism from the vice chairpersons of the watchdog, who were appointed by President Yoon Suk Yeol. Jeon was appointed by former President Moon Jae-in.

Therefore, Jeon proposed that the National Assembly decide between two options concerning the formation of the investigation team, to either include herself and three ACRC vice chairpersons or exclude all of them in order to guarantee political neutrality.

“There are four political appointees in the ACRC: the chairperson who was named by the previous administration (ruled by the DPK) and three vice chairpersons who were named by the current administration,” Jeon said.

“The first option ensures political fairness, where the chairperson and vice chairpersons can keep each other in check, while the second option is to exclude any political involvement by leaving the political appointees out of the investigation.”