South Korean authorities are currently investigating allegations that Kim Byung-kee, a senior politician from the ruling Democratic Party of Korea, abused his parliamentary position to attack the cryptocurrency exchange Upbit after his son got a job at the rival exchange Bithumb.
Kim, who has 25 years of experience in the National Intelligence Service where he was personnel chief before entering politics, is now facing at least nine different corruption allegations—several linked to claims that he exploited his official contacts to benefit his family.
The son is joining Bithumb, so I'm requesting to close 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 committee following the April 2024 election.
The assistant told investigators that Kim met with Dunamu's CEO several times between September and November 2024, bringing his youngest son—of two sons—to dinner meetings. "He walked around with his son's CV and handed it over," the assistant said. Kim also met with Bithumb's leadership in November 2024. The son ended up starting at Bithumb (not Dunamu) in January 2025.
Then a dramatic shift occurred. The assistant revealed that Kim instructed his staff to draft questions attacking Dunamu's market dominance, and he repeatedly stated that the company "needs to be taught a lesson" and should "be shut down".
In February 2025, Kim formally asked the Financial Services Commission (FSC) chair about Dunamu's monopolistic practices. The FSC chair responded that he would consult with the Fair Trade Commission on regulatory actions. The former assistant told investigators: "I believe he raised negative questions about a competitor because his son had started at Bithumb."
Pattern of alleged nepotism
The Bithumb claims fit into a broader pattern. Kim is said to have intervened to ensure his eldest son got a job at NIS in 2016—the same agency where Kim himself built his career. A leaked audio recording shows Kim's wife pressuring an NIS official and saying she needed "confirmation" that her son would be hired. The official reportedly promised to set up a special recruitment process for the son. Four months later, the son was hired through exactly such a process.
Other allegations include that Kim personally visited a university president to secure his youngest son's admission, received hotel vouchers worth 1.6 million won from Korean Air while overseeing a merger review, and that his wife allegedly misused a municipal official's corporate card.
High stakes in Korea's stock market rivalry
The scandal unfolds amid growing competition in South Korea's cryptocurrency market. According to CoinGecko, Upbit leads with 63% of trading volume in South Korea, followed by Bithumb with 30%.
Upbit's dominance has been declining. Its market share fell below 70% for the first time since 2020, while Bithumb significantly increased its marketing budget—from 16.1 billion won in 2023 to 192.2 billion won in 2024. The market landscape may shift further as Binance prepares to complete its acquisition of Gopax.
In an industry where regulatory stance determines survival, the scandal raises pressing questions about political influence on the competitive landscape.
Kim has denied all responsibility. The investigation is ongoing.