South Korean lawmaker Kim Nam-kuk walked out of court a free man. The ruling cleared him of all charges. The judge said he had no legal duty to report crypto holdings. South Korean law at the time did not require it.
Chosun Daily reported on Feb. 10 that Kim, once a Democratic Party member, faced allegations of hiding crypto assets. The charges stemmed from his asset reports. Prosecutors said he concealed 9.9 billion won in crypto gains. The first trial ended in his favor.
Court clears all charges
Judge Jeong Woo-yong made the decision. The Southern Seoul District Court delivered the verdict. The judge ruled that Kim did not obstruct public duty. From 2 p.m., the courtroom listened to the ruling. The judge found no grounds for the charges.
Kim moved money between accounts. He transferred funds from his crypto wallet before each year’s asset declaration deadline. He deposited them into a bank account. His goal was to keep total assets looking stable. Prosecutors argued this was deception. They claimed he misled the National Assembly’s ethics committee.
The prosecution insisted that Kim Nam-Kuk wanted to hide his profits. They said he used the remaining funds to buy more crypto. This, they argued, was an attempt to manipulate asset reports. But the court saw things differently. The judge pointed out the law’s limitations.
At the time, virtual assets were not part of the Public Service Ethics Act. The court concluded that Kim had no duty to disclose them. The ruling emphasized a lack of evidence for criminal intent.
The judge acknowledged inconsistencies in Kim’s asset reports. The court noted that some entries appeared inaccurate. However, this alone was not enough for convictions. The ruling stated that the ethics committee’s review was not obstructed. The lack of crypto regulations at the time worked in Kim’s favor.
Crypto laws under fire after Kim Nam-kuk verdict
The ruling drew mixed reactions. Supporters claimed justice prevailed. Critics argued the case exposed regulatory gaps. Some saw the verdict as a call for legal reform. Others believed it let officials off too easily. Kim has remained silent.
His legal team welcomed the ruling. They stressed that he followed the law as written. The prosecution has not yet announced an appeal. The case may push lawmakers to revisit asset disclosure laws. For now, Kim walks free. The court stands firm. The debate over virtual assets and transparency continues.
