Korean Lawmaker Probed For Allegedly Targeting Upbit To Aid Son At Bithumb

TLDR

Table of Contents

Kim Byung-kee allegedly pushed for Upbit to be shut down after his son joined Bithumb in January 2025.
A former aide claims Kim promoted his son’s resume during meetings with Upbit’s executives in late 2024.
Kim also allegedly influenced hiring at NIS for his elder son through a special recruitment process in 2016.
Police are reviewing nine total corruption claims involving Kim and his use of influence for personal gain.

South Korean lawmaker Kim Byung-kee is under police investigation for allegedly abusing his parliamentary powers to damage Upbit’s market position after his son began working at rival cryptocurrency exchange Bithumb. The case raises fresh concerns about political interference in South Korea’s competitive crypto market.

Alleged Abuse of Power to Undermine Upbit

South Korean police are investigating Democratic Party lawmaker Kim Byung-kee after claims he used his role in the National Assembly to damage cryptocurrency exchange Upbit. The alleged interference followed his younger son’s employment at competing exchange Bithumb in January 2025.

A former aide told investigators that Kim met several times with Upbit’s operator Dunamu between September and November 2024. These meetings included his son and, according to the aide, Kim handed over his son’s resume. After the son joined Bithumb, the lawmaker reportedly instructed aides to draft questions attacking Upbit’s dominance, stating the exchange needed to be “shut down.”

ฉาว! สส. เกาหลีใต้ ใช้อำนาจมิชอบโจมตี Upbit หวังเอื้อลูกชายที่ทำงานใน Bithumb
อ่านเพิ่มเติม :https://t.co/II2P2omxZ0 pic.twitter.com/RXt12pVOVO
— Siam Blockchain (@siamblockchain) January 7, 2026

In February 2025, Kim publicly questioned the Financial Services Commission chairman over Upbit’s market share, calling its position monopolistic. According to the aide, “He made negative inquiries against a competitor because his son joined Bithumb.”

Pattern of Alleged Nepotism and Influence

The Bithumb case is one of several corruption allegations now under police investigation. Kim’s elder son reportedly secured a job at the National Intelligence Service (NIS) in 2016 under unusual circumstances. Kim had previously served as NIS personnel director.

A leaked audio clip features Kim’s wife urging an NIS official to confirm their son’s hiring. The official allegedly responded that a recruitment process would be created for him. Four months later, the son joined the agency through a newly established hiring track.

Police are also examining other instances where Kim may have used his position for personal benefit. These include claims that he pressured a university president to admit his younger son and received hotel vouchers worth 1.6 million won while involved in Korean Air’s merger review.

Competition Between Upbit and Bithumb

The scandal comes as South Korea’s crypto exchange market experiences high competition. According to CoinGecko, Upbit held a 63% market share in 2025, followed by Bithumb with 30%. Upbit’s market share has been declining steadily since 2020.

Bithumb significantly increased its marketing budget, spending over 192 billion won in 2024, compared to 16.1 billion won in 2023. Meanwhile, Binance is expected to complete its acquisition of Gopax, adding further pressure to domestic exchanges.

Regulatory support remains crucial for survival in the crypto industry, making these allegations especially relevant to industry stakeholders.

Investigation Ongoing, Lawmaker Denies Allegations

Kim Byung-kee has denied all wrongdoing. He stated that his parliamentary actions were unrelated to his son’s job and that he did not misuse his office. Police say the investigation is ongoing and involves nine different allegations linked to abuse of power and nepotism.

Authorities are also reviewing testimonies from multiple aides and officials connected to the claims. The National Assembly has not yet issued a formal response to the matter.

The outcome may influence how lawmakers engage with businesses in sensitive industries such as cryptocurrency.