Rep. Kim Nam-kuk of the main opposition Democratic Party (DP) on Wednesday accepted the party's call to sell his cryptocurrency assets amid allegations of possible irregularities and a conflict of interest surrounding his coin holdings.
The first-term lawmaker has been under intense media and public scrutiny following revelations he had owned around 800,000 Wemix coins in 2021, worth around 6 billion won (US$4.5 million) at that time, a massive amount that does not fit his frugal image.
Earlier on Wednesday, the DP recommended Kim sell off the assets and decided to launch an investigation into whether irregularities were involved in his coin trading.
"As we have recommended he sell off his cryptocurrency assets, we believe he will comply," senior party spokesperson Kwon Chil-seung told reporters after the party's leadership meeting Wednesday in the southeastern city of Daegu.
Kwon also said the party's secretary general, Rep. Kim Byung-kee, will lead an investigation.
"Outside experts with specialist knowledge could join the investigation if necessary because coins involve things hard for ordinary people to understand," Kwon said.
Kim is the only member of the DP subject to the investigation, but the party's leadership is mulling expanding the investigation to all members, the spokesperson said.
Later in the day, Kim committed to disposing of his virtual assets and cooperating with the investigation.
"I received the recommendation from the party to sell my crypto assets. I will faithfully implement the recommendation," he said in a Facebook posting.
"I will transparently disclose data to the investigation team and undergo the inquiry faithfully," he added.
Kim reportedly withdrew all the coins before last March, ahead of the enforcement of the so-called Travel Rule. The rule requires digital exchanges to report personal information when a transferred amount exceeds a 1 million won threshold.
Critics say Kim's asset holdings represent a conflict of interest, as he co-sponsored a bill proposing a delay of income taxation on virtual assets in July 2021. This was about six months before he withdrew his Wemix coins from the digital wallet.
Suspicions have also arisen over where the money came from and whether he used insider information.
Kim has claimed no irregularities were involved in his trading and disclosed some information on his transactions.
Source: Yonhap News Agency