Corruption watchdog to investigate nepotism at NEC

The chief of Korea’s corruption watchdog said Tuesday that the agency will launch an all-out investigation into allegations of preferential hiring surrounding the National Election Commission (NEC).

Jeon Hyun-heui, chairperson of the Anti-Corruption and Civil Rights Commission (ACRC), speaks during an urgent press conference in downtown Seoul on Tuesday. [YONHAP]

The chief of Korea’s corruption watchdog said Tuesday that the agency will launch an all-out investigation into allegations of preferential hiring surrounding the National Election Commission (NEC).

In an urgent press conference held in downtown Seoul at the Government Complex Seoul, Jeon Hyun-heui, chairperson of the Anti-Corruption and Civil Rights Commission (ACRC), said it was the ACRC’s duty to fulfill “any appropriate role” regarding the nepotism suspicions.

The investigation will be held from Thursday to June 30, said Jeon.

“We have officially conveyed our intention to conduct an investigation into the situation, and we have requested a response from the NEC by tomorrow regarding their stance on the matter,” she said.

Jeon, a former lawmaker of the Democratic Party (DP), also raised the possibility of launching a separate investigation into lawmakers’ cryptocurrency investments, saying the ACRC was willing to dig into those suspicions as well.

Jeon urged lawmakers to submit personal information consent forms as soon as possible, implying that the documents were necessary for the ACRC to probe lawmakers’ transactions.

Last Thursday, the secretary general and deputy secretary general of the NEC stepped down after allegations surfaced about their daughters being unfairly hired to work at the NEC’s regional offices.

Several other current and former high-ranking officials of the NEC have also been accused of nepotism by local media, prompting the NEC to announce Tuesday that it would launch its own investigation to look into the suspicions.

Jeon’s reference to a possible cryptocurrency probe comes two weeks after Rep. Kim Nam-kuk left the DP after it was revealed that he formerly owned 6 billion won ($4.5 million) worth of Wemix cryptocurrency tokens issued by the game publisher Wemade.

Kim bought most of his Wemix early last year and sold it all off a month later, just days before Korea adopted a so-called “travel rule” that requires cryptocurrency platforms to retain and share information with financial regulators about the senders and recipients of cryptocurrency transfers exceeding 1 million won in value.

While Kim claimed he had not violated any laws by conducting cryptocurrency transactions, he previously co-sponsored a bill to delay the taxation of virtual assets, giving rise to allegations that he faced a conflict of interest as a lawmaker who owned cryptocurrencies.

On Tuesday, the National Assembly’s Special Committee of Ethics agreed to formally start discussions on potential punitive measures against Kim.

BY LEE SUNG-EUN [lee.sungeun@joongang.co.kr]