The Supreme Court has overturned and remanded a damages suit that Kim Nam-kuk of the Democratic Party of Korea filed against former Yeouido Institute deputy head Jang Ye-chan, who had previously raised "illegal coin allegations" against Kim. The court found there is room to deem it not unlawful, saying criticism of a public official's morality should not be easily restricted unless it is malicious.
The Supreme Court's First Division (presiding Justice Seo Kyung-hwan) on the 25th overturned an appellate ruling that ordered former deputy head Jang to pay 10 million won to Kim in the damages suit Kim brought, and sent the case back to the Seoul Southern District Court. Accordingly, the Seoul Southern District Court must newly examine whether Jang's posts and remarks were unlawful.
Earlier, in May 2023, allegations were raised that Kim held a large amount of WEMIX coin, a virtual asset created by the domestic game company Wemade.
At the time a People Power Party youth supreme council member, former deputy head Jang publicly raised suspicions through social media posts and radio interviews around the same period that Kim had engaged in illegal transactions by knowing in advance information on the coin's listing.
Jang's post said, "Kim's coin addiction appears to be at a level that requires treatment. Lee Jae-myung, who kept such a person as a closest aide and joined in manipulating coin prices, must also take political responsibility."
In the radio interview, Jang said, "I don't know how long we have to keep paying this criminal a lawmaker's salary. Even people in the coin industry suggested that Kim likely knew inside information on the listing and said it appeared to be a transaction pattern showing a possibility of laundering now."
In June 2023, Kim filed a criminal complaint against former deputy head Jang for defamation by stating false facts. In September the same year, he filed a civil suit seeking 50 million won in damages.
In the first trial, the court ordered former deputy head Jang to pay 30 million won in consolation money to Kim. It found that Jang's post and remarks constituted stating false facts.
In the second trial, the consolation money Jang had to pay was reduced to 10 million won. The appellate court determined that Jang's post and remarks constituted stating false facts that Kim manipulated virtual asset prices, used inside information about the listing, and laundered funds. It also deemed them unlawful as malicious or grossly disproportionate attacks.
However, the Supreme Court said, "It is difficult to conclude that former deputy head Jang's post and remarks were malicious or extremely reckless attacks that grossly lost proportionality," adding there is room to find they were not unlawful.
As the basis, it cited that Kim at the time was an incumbent National Assembly member and a senior public official, a public figure. The Supreme Court said, "Even if there are some categorical expressions in former deputy head Jang's post and remarks, most people encountering them would dismiss them as political offensives and would not accept the claims as objective truth."
It also pointed out that the suspicions Jang raised were matters known through multiple media reports. The Supreme Court said, "After the first report of the suspicions on May 5, 2023, Kim did not provide a sufficient explanation, left the Democratic Party of Korea on the 14th of the same month, and did not engage in official activities for a considerable period," adding, "There is room to view that this amplified the suspicions."
A Supreme Court official explained, "We reaffirmed the existing legal principle that, regarding monitoring and criticism of whether a public official's morality, integrity, or work handling is being carried out properly, it is difficult to readily recognize the unlawfulness of defamation unless the expression is malicious or an extremely reckless attack that grossly loses proportionality."
Earlier, in Aug. 2024, prosecutors disposed of Kim's case accusing former deputy head Jang of defamation as "no charges," citing reasons including the content of multiple media reports and the fact that the Financial Intelligence Unit requested an investigation.
There were also allegations that, ahead of reporting his assets as a lawmaker in 2021 and 2022, Kim transferred part of the deposits in his virtual asset account to bank deposits and then reconverted them into virtual assets. Prosecutors indicted Kim in Aug. 2023 on charges of obstructing the Public Service Ethics Committee's asset change review duties (obstruction of the performance of official duties by fraudulent means), but he was acquitted in both the first and second trials, and the verdict became final.
Kim rejoined the party by entering the Democratic Alliance, the Democratic Party's satellite proportional party, in Mar. 2024, 10 months after leaving, and returned when the two parties merged after the 22nd general election. He did not run in the 22nd general election and, when the Lee Jae-myung administration was launched in Jun. 2025, he was appointed presidential office digital communications secretary. In the by-election held on the 3rd, he ran in the Ansan-gap district and was elected.