- Democratic Party member Kim Namkuk once owned approximately $4.5 million in WEMIX tokens.
- The motion to evict Namkuk for the same reason required a majority vote to pass, which was not achieved.
South Korea’s parliamentary ethics subcommittee has decided not to expel former Democratic Party member Kim Nam-kuk after a divisive vote. The motion was deadlocked as the ruling People Power Party and Democratic Party split their votes evenly, resulting in a 3–3 tie that thwarted the motion’s passage.
The subcommittee initially aimed to remove him from office. The investigation fell on Kim’s property of Wemix [WEMIX] tokens, as a court ruling led to the removal of these tokens from major exchanges in 2022. South Korean blockchain game maker Wemade developed the tokens. Local news channel Yonhap reported the rejection of the eviction motion on August 29. It was revealed that Kim once owned around $4.5 million in WEMIX tokens.
Kim Nam-kuk’s connection to these investments raised serious concerns about conflicts of interest, insider trading and possible money laundering. His holdings of tradable WEMIX tokens prior to their delisting led to questions about the ethical implications of his actions.
Ethics Subcommittee rejects vote to impeach Kim Nam-kuk over WEMIX interests
This controversy led to the rapid advancement of legislation that seeks transparency from public officials regarding their holdings of cryptocurrency. The case urged a legal effort to mandate disclosure of cryptocurrency holdings by government officials in South Korea.
In July, the South Korean Financial Services Commission said revealed plans for a new bill requiring cryptocurrency issuing and holding companies to disclose their crypto assets starting in 2024.
The South Korean city of Cheongju announced in mid-August that it planned to seize cryptocurrencies from local tax evaders. This initiative required cryptocurrency exchanges such as Upbit and Bithumb to collaborate by sharing information about tax offenders.