'Coin Controversy' Kim Nam-kook at Appellate Trial: "This is Not a Place to Judge Moral or Political Responsibility"

"The trial must be based on strict legal judgment"...Denies Allegations

Prosecution: "The acquittal in the first trial was a factual error"...Verdict on the 21st of next month

Former Democratic Party of Korea lawmaker Kim Nam-kook, who concealed his large holdings of virtual assets (cryptocurrency) during two disclosures of parliamentary public officials' assets, again denied the charges in his appellate trial.

At the first hearing of the appeal at the Seoul Southern District Court Criminal Appellate Division 3-1 (Presiding Judges Im Seon-ji and Jo Gyu-seol), Kim's side argued, "A trial is not a place to judge moral or political responsibility, but rather to make a legal judgment," adding, "The court of first instance already acknowledged there was no criminal violation."

They further contended, "He suffered severe criticism from the media and public and has already taken political responsibility by not running in the general election," insisting that the virtual assets at the time were not subject to legal reporting.

Kim omitted reporting tens of billions of won in profits from virtual asset investments during his 2021 and 2022 asset disclosures. Allegations were raised that he intentionally understated his assets by transferring only a portion of the deposited cryptocurrency into his bank account to match the reported total.

Prosecutors stated, "The defendant used the full amount of the account deposits for cryptocurrency purchases to avoid asset inspection, and the National Assembly Public Official Ethics Committee did not request any explanation because they were unaware of the hidden assets," seeking a six-month prison sentence.

In the previous first trial, prosecutors insisted that Kim concealed ₩9.9 billion in cryptocurrency deposits during the 2021 disclosure, reporting only ₩1.2 billion in total assets, and also hid ₩990 million in a similar manner in 2022, thus requesting a six-month sentence.

However, the court of first instance ruled, "The virtual assets specified in the prosecution's claim were not subject to disclosure by members of the National Assembly at the time," and found Kim not guilty. Considered a key member loyal to the pro-Moon faction, Kim joined the presidential office last month as the digital communications secretary.

The sentencing in the appellate trial is scheduled for 2 p.m. on the 21st of next month.

Oh Se-seong, Hankyung.com Reporter sesung@hankyung.com