South Korean Lawmaker Under Fire as Son Joins Rival Exchange: A Question of Conflict of Interest?

A South Korean lawmaker, Kim Byung-kee, is facing criticism for questioning Upbit, the country's largest cryptocurrency exchange, while his son found a position at its competitor, Bithumb. This situation raises significant concerns about potential conflicts of interest in the intersection of politics and the cryptocurrency sector.

Key Takeaways

South Korean lawmaker Kim Byung-kee is scrutinized for questioning Upbit while his son secured an internship at Bithumb.
Reports reveal that Kim met Bithumb executives shortly before his son joined the firm.
Kim insists his legislative work is unrelated to his son's employment, and denies any wrongdoing.
Upbit holds a dominant position in South Korea's crypto market, with concerns growing over systemic risks and regulatory accountability.

Questionable Actions Surrounding Lawmaker

According to reports, Kim Byung-kee, a senior member of the Democratic Party and the National Assembly’s Political Affairs Committee, has been accused of pressuring Dunamu, which operates Upbit, while assisting his son in landing a job at its competitor, Bithumb. The allegations emerged from various local media, including Kyunghyang Shinmun, with sources revealing insights from former aides.

In November of last year, Kim met with executives from Bithumb. Around that same time, a job listing for a data analysis intern was posted at Bithumb, with qualifications closely aligned with his son’s educational background in mathematics from a U.S. institution. His son began working at the exchange in January and departed by June. A former aide claimed that Kim's staff circulated his son’s résumé to other companies before he began at Bithumb, characterizing the hiring as “special employment.”

After the meeting with Bithumb executives and the job posting, Kim reportedly instructed his team to prepare pointed questions for Dunamu. One former assistant disclosed that Kim specifically used the term “attack Dunamu,” framing Upbit's substantial market share as a monopoly.

In February, Kim voiced these issues during a committee session, mentioning Upbit’s market share, the fallout from the Terra-Luna incident, and findings from a Financial Intelligence Unit inspection that highlighted over 700,000 violations involving customer identification.

During this session, Kim did not direct any inquiries towards Bithumb and firmly denies any wrongdoing. He argues that his legislative work stems from broader policy concerns and is not linked to his son’s role, which he claims was attained through standard recruitment processes. Moreover, Kim asserts that he did not mention particular companies during committee discussions and has expressed regret over connections made between his legislative role and his son's employment.

Bithumb has responded similarly, asserting that its hiring processes are transparent and that lawmakers and experts have consistently raised concerns regarding monopolization in the crypto market since 2021.

The Broader Context of Upbit's Market Dominance

This controversy unfolds amid increasing scrutiny of Upbit's dominance in South Korea's crypto market. Data from the Financial Supervisory Service indicates that Upbit accounted for 71.6 percent of the domestic crypto trading volume in the first half of 2025, with around 833 trillion won (approximately 642 billion dollars) in transactions. Bithumb held a secondary market share of 25.8%, while other licensed exchanges managed under 3%.

This high concentration of market share has prompted warnings from regulators and lawmakers across various political affiliations, who express concern about systemic risks, especially with Dunamu nearing a merger with internet giant Naver. As regulators criticize the platform’s slow reporting and insufficient accountability measures as compared to existing regulations, they are also contemplating reforms. These could include instituting bank-level liability standards for crypto exchanges, requiring mandatory compensation for users in cases of hacks or system failures, and imposing heavier penalties for non-compliance.

The case surrounding Kim Byung-kee is fueling a larger dialogue in South Korea on the need for oversight, the promotion of healthy competition, and the nuances of legislative power vis-à-vis personal interests in the rapidly growing digital asset market.