Political Scandals and South Korea’s Crypto Exchange War: Kim Byung-kee Case

Updated

January 8, 2026

Gambar Political Scandals and South Korea’s Crypto Exchange War: Kim Byung-kee Case

Jakarta, Pintu News – South Korean police are investigating allegations against Kim Byung-kee, a senior lawmaker from the Democratic Party of Korea, who allegedly abused his position to attack crypto exchange Upbit for the benefit of his son who works at Bithumb, Upbit’s competitor. The case comes after a series of meetings Kim had with the leaders of the two exchanges, which led to an attack on Upbit’s market dominance.

Case Chronology and Family Involvement

Following Kim’s transfer to the National Assembly’s Political Affairs Committee following the April 2024 general election, his interest in Dunamu (operator of Upbit) and Bithumb increased. According to local media reports, Kim brought along his younger son to several dinner meetings with Dunamu’s CEO between September and November 2024, where he briefly handed over his son’s resume.

However, his son ended up joining Bithumb in January 2025. After his son was hired at Bithumb, Kim began to show an aggressive attitude towards Upbit. He ordered his staff to prepare a series of questions attacking Dunamu’s market dominance, arguing that the company “needs to be taught a lesson” and should be “shut down”.

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Intervention and Alleged Nepotism

The allegations against Kim are not limited to this case alone. In 2016, Kim allegedly interfered in the recruitment of her eldest son at NIS, the agency where she built her career. A leaked recording showed Kim’s wife urging an NIS official to ensure her son was accepted, which was then followed by a special recruitment process.

In addition, Kim was also accused of visiting the president of a university to ensure his young son’s admission. Furthermore, Kim is accused of receiving 1.6 million won worth of hotel vouchers from Korean Air while overseeing the company’s merger process, and his wife allegedly misused a district council official’s charge card.

Dynamics of Crypto Exchange Competition in Korea

This scandal comes amid growing competition in the Korean crypto market. Upbit still leads with 63% of trading volume, followed by Bithumb with 30%. However, Upbit’s dominance began to erode, dropping below 70% for the first time since 2020, while Bithumb dramatically increased its marketing spend from 16.1 billion won in 2023 to 192.2 billion won in 2024.

The situation is further complicated by Binance’s plans to complete the acquisition of Gopax. In an industry where regulatory status determines survival, this scandal raises uncomfortable questions about the influence of politics on competitive dynamics. Kim has denied any wrongdoing, but the investigation continues.

Conclusion

This case highlights the importance of transparency and fairness in the regulation and oversight of crypto markets. As the industry grows, it is imperative for all parties to ensure that the actions of individuals do not compromise the integrity and fair competition in the market.

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