South Korean Ethics Commission Reports Public Officials’ Crypto Holdings
South Korea’s Ethics Commission revealed that high-ranking public officials in the country hold an average of 35.1 million won ($24,000) in crypto assets. On March 27, the country’s Ethics Commission for Government Officials reportedly disclosed that more than 20% of the surveyed public officials hold 14.4 billion won ($9.8 million) in crypto. This means 411 of the 2,047 officials subjected to the country’s disclosure requirements hold crypto assets. The highest amount disclosed was 1.76 billion won ($1.2 million) belonging to Seoul City Councilor Kim Hye-young. The officials held different crypto assets, including Bitcoin (BTC), Ether (ETH), XRP (XRP), Dogecoin (DOGE), Luna Classic (LUNC) and others.
South Korean Public Officials Disclosed Crypto Holdings
The disclosure of public officials’ crypto assets follows calls for transparency from its prime minister. In 2023, South Korean Prime Minister Han Deok-soo said in a news conference that high-ranking government officials must include crypto in their property disclosures. The official said crypto should be treated similarly to other assets like precious metals. On May 25, 2023, South Korea passed a bill mandating public officials to include crypto in their public asset disclosures. The new system granted South Koreans access to the crypto holdings of at least 5,800 public officials starting in 2024. In June 2024, crypto exchanges in the country launched information provision systems to simplify the registration of information about crypto holdings.
Lawmaker Controversy Spurred Crypto Disclosure Laws
The new law was created in response to the controversy involving South Korean lawmaker Kim Nam-kuk, who was accused of liquidating crypto assets and concealing holdings of around $4.5 million before lawmakers in the country enforced the Financial Action Task Force’s (FATF) “Travel Rule.” Kim departed from the Democratic Party at the height of the controversial lawsuit to relieve party members of the burden of the lawsuit. While prosecutors requested a six-month prison sentence for Kim, the lawmaker was eventually acquitted after a judge ruled that crypto assets were not subject to public disclosures at the time Kim made the transactions.