South Korean police are investigating allegations that Kim Byung-kee, a senior lawmaker from the ruling Democratic Party of Korea, abused his parliamentary position to attack cryptocurrency exchange Upbit after his son secured employment at rival platform Bithumb.
Kim, a 25-year veteran of the National Intelligence Service who served as its personnel director before entering politics, now faces at least nine separate corruption allegations—several involving claims he leveraged government connections to benefit his family.
Son Joins Bithumb, Then Calls to “Shut Down” Upbit
According to a local media report, Kim began showing sudden interest in both Dunamu (the operator of Upbit) and Bithumb after being transferred to the National Assembly’s Political Affairs Committee following the April 2024 general election.
The aide told investigators Kim met with Dunamu’s CEO multiple times between September and November 2024, bringing his younger son—of two sons—to dinner meetings. “He carried his son’s resume around and handed it over,” the aide said. Kim also met Bithumb’s leadership in November 2024. His son ultimately joined Bithumb—not Dunamu—in January 2025.
What followed was a dramatic shift. The aide stated Kim instructed staff to prepare questions attacking Dunamu’s market dominance, repeatedly saying the company “needs to be taught a lesson” and should be “shut down.”
In February 2025, Kim formally questioned the Financial Services Commission chairman about Dunamu’s monopolistic practices. The FSC chief responded that he would consult with the Fair Trade Commission on regulatory measures. The former aide told police, “I believe he made negative inquiries against a competitor because his son joined Bithumb.”
Pattern of Alleged Nepotism
The Bithumb allegations fit a broader pattern. Kim allegedly intervened to secure his elder son’s employment at the NIS in 2016—the same agency where Kim built his career. A leaked recording showed Kim’s wife pressuring an NIS official, saying she needed “confirmation” her son would be hired. The official allegedly promised to create a special recruitment process around the son. Four months later, the son was hired through precisely such a process.
Other allegations include Kim personally visiting a University’s president to secure his younger son’s admission, receiving hotel vouchers worth 1.6 million won from Korean Air while overseeing its merger review, and his wife allegedly misusing a district council official’s expense card.
High Stakes in Korea’s Exchange Wars
The scandal unfolds amid intensifying competition in Korea’s crypto market. According to CoinGecko, Upbit leads South Korea’s trading volume with 63%, followed by Bithumb at 30%.
Upbit’s dominance has been slipping. Its market share fell below 70% for the first time since 2020, while Bithumb dramatically increased marketing spending—from 16.1 billion won in 2023 to 192.2 billion won in 2024. The landscape faces further disruption as Binance prepares to complete its Gopax acquisition.
For an industry where regulatory standing determines survival, the scandal raises uncomfortable questions about political influence over competitive dynamics.
Kim has denied wrongdoing. The investigation continues.
