South Korean police are investigating allegations that Kim Byung-kee, a senior lawmaker in the ruling Democratic Party, used his position in parliament to pressure the cryptocurrency exchange Upbit after his son was hired by rival exchange Bithumb.
Kim spent 25 years working at the National Intelligence Service (NIS) and held the position of personnel director before entering politics. He currently faces at least nine separate corruption charges—including allegations that he used his connections within the government to benefit his family.
Son joined Bithumb, then called for the "closure" of Upbit.
According to a report from local media , after being appointed to the Political Committee of the National Assembly following the April 2024 election, Kim began to show particular interest in both Dunamu (the operator of Upbit) and Bithumb.
An assistant revealed to investigators that Kim met with the CEO of Dunamu several times between September and November 2024, bringing his youngest son along to these dinners. “He always brought his son’s job application and gave it to the CEO,” the assistant said. Kim also met with Bithumb executives in November 2024. Ultimately, Kim’s son was hired at Bithumb—not Dunamu—in January 2025.
Then, everything changed completely. The assistant said Kim instructed staff to draft questions targeting Dunamu's market monopoly, repeatedly stating that the company "needed to be taught a lesson" and should "be shut down."
In February 2025, Mr. Kim officially questioned the Chairman of the Financial Services Commission about Dunamu's monopolistic competition practices. The FSC leader responded that he would consult with the Fair Trade Commission to XEM a solution. According to a former assistant's testimony to the police: "I believe he asked questions that were detrimental to the competitor because his son had been hired by Bithumb ."
Signs of cronyism
The allegations related to Bithumb are part of a recurring pattern . In 2016, Kim was suspected of interfering to get his eldest son hired by the NIS—the agency where he had a long career. A leaked recording showed Kim's wife pressuring an NIS official, saying she needed "confirmation" that her son would be hired. The official allegedly promised to create a special recruitment process specifically for Kim's son. Four months later, his eldest son was admitted to the NIS through that same process.
Other allegations include Kim directly meeting with the president of a university to arrange his youngest son's admission, receiving a 1.6 million won hotel voucher from Korean Air while overseeing the airline's merger XEM process, and his wife allegedly misusing a district council official's spending card.
The battle between stock exchanges in South Korea is becoming increasingly intense.
This scandal occurred amidst increasingly fierce competition in the South Korean cryptocurrency market. According to CoinGecko , Upbit leads in volume in South Korea with 63%, followed by Bithumb with 30%.
Upbit 's market share is declining. For the first time since 2020, Upbit 's market share has fallen below 70%, while Bithumb has significantly increased its marketing spending—from 16.1 billion won in 2023 to 192.2 billion won in 2024. The market is expected to experience even greater volatility as Binance prepares to finalize its acquisition of Gopax.
In an industry where compliance is crucial for survival, this scandal raises troubling questions about the impact of politics on competition among exchanges.
Mr. Kim denies any wrongdoing. Authorities are continuing their investigation.
