野 "Thorough Investigation into Deutsch Motors Stock" vs 與 "The Truth about North Korea Cryptocurrency Must Be Revealed"

Financial Supervisory Service Governor Lee Bok-hyun is attending the National Assembly's audit of the Financial Supervisory Service held on the 11th, providing a business report. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Ji Yeon-jin] On the 11th, during the National Assembly's National Audit of the Financial Supervisory Service (FSS) by the Political Affairs Committee, opposition party lawmakers launched an offensive demanding a thorough investigation into the stock manipulation case of Deutsche Motors, which is linked to First Lady Kim Keon-hee. In response, the ruling party actively brought up suspicions of the Moon Jae-in administration’s use of virtual currency for illicit remittances to North Korea as a key issue.

Lee Bok-hyun, Governor of the FSS, dismissed criticisms that the FSS refused police requests for data related to the Deutsche Motors stock manipulation case by stating, "No official documents have been received," and cautiously drew a line regarding additional roles for the FSS since the prosecution is currently conducting an investigation. Regarding illegal foreign currency remittances using domestic virtual asset exchanges, he stated that suspicious transactions would be monitored through financial institutions.

Park Sung-joon, a member of the Democratic Party of Korea, cited recorded conversations between First Lady Kim Keon-hee and securities company employees revealed during the trial of the Deutsche Motors stock manipulation case at the audit, saying, "Stocks of Deutsche Motors were bought under someone's instructions, and there is evidence of wash trading," adding, "The damage from stock manipulation is enormous, shaking the foundation of securities and finance, which are the pillars of capitalism." He urged, "The FSS, as the frontline of the capital market, must review the trial records of the Deutsche Motors stock manipulation case and present its stance before the comprehensive audit."

FSS Issues Statement on Deutsche Motors Stock Manipulation

In response, Governor Lee said, "The highest level of FSS sanctions is to report to the prosecution through the Securities and Futures Commission," adding, "Since the prosecution is investigating, it is cautious to exercise the FSS’s investigative authority."

Earlier, Hwang Un-ha of the Democratic Party pointed out that the police had conducted an internal investigation into the Deutsche Motors stock manipulation case and requested transaction data from the FSS during the process, but the investigation was closed due to the FSS’s refusal to provide the data. However, Governor Lee responded, "I checked whether there was an official document (received from the police), but it seems no formal document was received."

He further explained, "The implication is that there is no official document or personnel remaining," and added, "Recently, the cooperation process allows for phone calls if data is needed, but if there is actual data or a need for cooperation, official documents are exchanged, or there are preliminary stages before formal cooperation."

The ruling party focused on suspicions of illegal foreign currency remittances through domestic virtual asset exchanges and the possibility that funds were transferred to North Korea. On the previous day, Yoon Sang-hyun of the People Power Party cited controversies surrounding Minister of Justice Han Dong-hoon’s July trip to the United States, which was claimed by Kim Ui-gyeom of the Democratic Party, and launched an offensive against opposition figures.

Kim appeared on a radio show the day before and claimed that Minister Han’s U.S. trip in July was likely for the purpose of investigating Lee Jae-myung, leader of the Democratic Party. Virgil Griffith, who developed the cryptocurrency Ethereum, was sentenced to 63 months in prison after being caught in 2019 for visiting North Korea and introducing technology to circumvent sanctions for overseas cryptocurrency remittances. The U.S. prosecution submitted emails exchanged between Griffith and his contact in Korea to the court, which included content stating, "The mayor of Seoul and the mayor of Seongnam in Korea are interested in establishing a cryptocurrency transaction network with North Korea." The mayor of Seoul refers to the late Park Won-soon, and the mayor of Seongnam refers to Lee Jae-myung.

Kim argued, "From the ruling party’s perspective, this could be an opportunity to catch the link to North Korea and sweep up key figures of the Moon Jae-in administration and Mayor Lee Jae-myung. They claim that Minister Han’s U.S. trip was to investigate this."

In response, Yoon said, "Since the email materials were presented by the U.S. Federal Prosecutor’s Office, the likelihood of their truth is high," and pointed out, "If domestic political figures are involved, this is a serious matter." He urged, "Look into the existence of a 'Coin Gate' related to inter-Korean business."

FSS Should Investigate North Korea Coin Gate

Yoon Han-hong of the People Power Party also claimed on the same day, "According to data received from a U.S. virtual asset transaction forensic analysis company, about 74.9 billion KRW worth of virtual assets flowed from North Korean hacking group electronic wallets to domestic virtual asset exchanges," adding, "North Korea issued coins in Thailand, and reports say these were used as a method of indirect remittance to North Korea."

He pointed to suspicions involving opposition figures such as Lee Jae-myung, leader of the Democratic Party, and former Minister of Justice Choo Mi-ae. Yoon said, "Recent media reports indicate that Lee’s close aides and the Asia-Pacific Peace Exchange Association (hereafter, Asia-Pacific Association), which received concentrated sponsorship from Ssangbangwool, issued North Korea coins in Thailand," and claimed, "This amount effectively flowed to North Korea through indirect North Korea coins."

Governor Lee responded, "Since related funds must pass through financial institutions, we will investigate illegal activities by examining financial institutions," and added, "We will closely cooperate with investigative agencies such as the prosecution and police if necessary."

Moon Jae-in, Lee Jae-myung, Choo Mi-ae Used to Politicize National Audit

In response, Kim Jong-min of the Democratic Party protested, saying, "Aside from suspicious foreign currency transactions related to virtual assets, there are no confirmed facts about the Moon Jae-in administration, Lee Jae-myung, and former Minister of Justice Choo Mi-ae. Politicizing these issues turns the Political Affairs Committee into a battleground," adding, "Is it appropriate to mention these without evidence and politicize the audit?" He emphasized, "Basic decency must be maintained."

Meanwhile, the FSS recently discovered abnormal foreign currency remittances amounting to 10 trillion KRW in the banking sector and detected suspicious overseas remittance patterns worth 7 trillion KRW at NH Futures. The FSS has launched an investigation into whether similar transactions exist across all futures companies and securities firms.

The FSS’s inspection revealed that the scale of abnormal foreign currency remittances was 5.04 billion USD (approximately 7.18 trillion KRW), which is the amount remitted overseas from funds withdrawn from domestic virtual asset exchanges through entrusted accounts to foreign investment corporations’ overseas accounts since 2019.

A foreign investment corporation representative of Chinese nationality used a method of opening an entrusted account in the corporation’s name at NH Futures under the pretext of derivative transactions (won-dollar futures trading). Funds withdrawn from domestic virtual asset exchanges flowed through the foreign investment corporation representative and multiple individuals into the foreign investment corporation’s account.

This content was produced with the assistance of AI translation services.