Kim Nam-guk, a former lawmaker from South Korea's Democratic Party, is accused of hiding significant cryptocurrency assets. Prosecutors have requested a six-month prison sentence for allegedly misreporting these assets in mandatory declarations to the National Assembly.
How Kim Hid His Cryptocurrency
According to prosecutors, Kim planned to hide his crypto assets from the National Assembly’s Ethics Committee. He transferred a significant portion of his crypto holdings to a bank account to appear as though he wasn't holding coins, underreporting his total assets.
False Declarations in 2021 and 2022
In 2021, Kim declared assets worth approximately 1.2 billion won, while prosecutors believe he had about 9.9 billion won in cryptocurrency. This continued in 2022, drawing attention to his financial dealings.
Kim in his Defense
Despite serious tax evasion allegations, last month, Kim criticized his party's push for virtual asset taxation, calling it ineffective. The Democratic Party is discussing revising tax laws to increase the deduction limit for virtual assets to 50 million won.
The court's decision in Kim's case could set a precedent for future cases. South Korea will need solid plans to regulate such matters properly.
