- Former aide claims ruling party floor leader’s instructions to attack Upbit “came suddenly.”
- Lawmaker made scathing Upbit comments weeks after son landed Bithumb internship.
- Resignation calls mount from government and opposition.
Kim Byung-ki, the floor leader of South Korea’s ruling Democratic Party, faces mounting resignation calls amid claims he was incentivised to lobby against the country’s leading crypto exchange Upbit — while securing an internship for his son at the exchange’s closest rival, Bithumb.
A former aide to Kim, speaking to the South Korean newspaper Kyunghyang Shinmun, said they and others were instructed to “attack” the Upbit operator Dunamu in the National Assembly upon Kim’s request.
“Kim suddenly called me to say, ‘We need to go on the offensive against Dunamu,’ and told us to prepare related questions,” the unnamed aide said. “Kim said Dunamu’s monopoly-like dominance of the crypto exchange market was a massive problem.”
The allegations come at a key moment for both Upbit and Bithumb. Politicians and regulators are set to have the final say on a proposed merger between the internet giant Naver and Dunamu.
Meanwhile, Bithumb is aiming for an initial public offering in New York early next year.
Controversy continues
The aide claims Kim issued the instructions in February, at a time when Kim was a member of the National Assembly’s Political Affairs Committee. The committee oversees domestic financial institutions, including both Upbit and Bithumb.
In September, the South Korean investigative journalism outlet NewsTapa reported that Kim’s son was hurriedly hired as an intern in Bithumb’s data analysis team “immediately after his father’s private meeting with the exchange.” That meeting took place in November 2024, the outlet reported.
Weeks later, Kim made several critical comments about Upbit at committee meetings. Although he did not mention the platform by name, the nature of his comments left no room for ambiguity.
“I believe the biggest problem with South Korea’s crypto exchanges is the monopoly status of one particular exchange,” he said, Kyunghyang Shinmun wrote. “In reality, this company […] was the last exchange to suspend trading in [Terra ecosystem coins] during the crash in May 2022.”
Upbit’s domestic market share in the first half of 2025 stood at 72%, per South Korean regulatory data.
At the same meeting, Kim also noted that a Financial Intelligence Unit investigation at this exchange had “uncovered a staggering 700,000 violations” of know-your-customer protocols.
Despite similar findings at Bithumb and other exchanges, Kim made no comments about them at the meeting.
Kim denies allegations
A Bithumb official denied any wrongdoing, telling the newspaper that all of its recruitment is “conducted transparently, openly, and fairly.”
Kim denied the allegations, telling Kyunghyang Shinmun he did not “specifically name any company” at the committee meeting.
“I simply made the common-sense point that monopolies cannot be justified in the case of any company,” Kim said, “[Bithumb’s] operations, including the hiring [of my son], have absolutely nothing to do with me. It is deeply regrettable that my legislative activities are being linked to my son’s employment.”
The storm appears very unlikely to blow over quickly, however. The main opposition People Power Party has called for Kim’s resignation not only as floor leader but also as a member of the National Assembly.
Minor parties allied with the government, such as the Cho Kuk Innovation Party and the Progressive Party, have also demanded action.
The South Korean newspaper Busan Ilbo reported that some “voices within” the Democratic Party have also called for Kim to step down.
Kim is facing a slew of corruption allegations. His wife has also been accused of misappropriating district council funds.
Kim has denied allegations of wrongdoing, the South Korean broadcaster Yonhap TV News reported.
A Democratic Party floor spokesperson said Kim would make a statement on his position at a strategy meeting on December 30, adding that Kim had made no “definitive” decision on his future.
Tim Alper is a news correspondent at DL News. Got a tip? Email at tdalper@dlnews.com.quickly
