Lucent Block, rejected by regulators, claims NXT used its confidential materials to gain STO approval, raising ethics questions
It has been revealed that Representative Kim Hak-su of Nextrade (NXT), who sparked controversy by allegedly stealing technology from a security token offering (STO) startup, pressured the representative of the startup via phone call not to mention the issue externally (media and political circles). Nextrade is South Korea’s first alternative exchange, an electronic trading platform that allows stock trading outside the existing Korea Exchange. NXT received internal company materials related to the STO business from Lucent Block, an STO startup, last year, and then entered the market, sparking controversy.
Representative Kim Hak-su, a former administrative high-ranking civil service exam passer, worked as an official at the Ministry of Finance and Economy and the Financial Services Commission, and has served as NXT’s first CEO since 2022. Recently, the Financial Services Commission deliberated on the preliminary approval application for the STO business and selected NXT as the operator. Lucent Block, which provided internal company materials related to the business to NXT, was rejected. The Financial Services Commission plans to hold a regular meeting on the 14th and make a final decision on whether to grant preliminary approval for the security token offering over-the-counter exchange operator.
Security token offering refers to a method of trading rights to real assets (such as real estate) and financial assets (such as stocks and bonds) in small units using blockchain technology. In South Korea, when the regulatory sandbox was established under the Special Act on Financial Innovation Support in 2018, the startup Lucent Block entered the market first and pioneered the market over the past 7 years. This newspaper, October 20, 2025, page B3, reported that NXT, after receiving various confidential materials under the pretext of considering participation in a consortium led by Lucent Block, broke its promise not to enter the related business and formed its own consortium to directly become an operator. During the National Assembly audit last October, there were criticisms that NXT’s actions “violated business ethics.”
According to a recent recording obtained by this newspaper, Representative Kim Hak-su of NXT called Representative Heo Se-young of Lucent Block at the end of October last year and began scolding him, saying, “Do you feel relieved? Do you think you can do that? Are you going to talk to the media like that and go to lawmakers and say that?” and “Do you feel relieved doing that, man?” He said, “I don’t feel good when the newspaper attacks me and our company unreasonably,” and demanded, “Do not talk about how we used the technology.”
Representative Kim also admitted that NXT had promised not to enter the security token offering business. He said, “What I promised you (not to enter) and the actual business opportunity arising are different stories,” and “You might be disappointed with me, but I’m very angry right now.” He did not acknowledge that NXT had received Lucent Block’s internal confidential materials. Representative Kim said, “Receiving company financial statements and materials is common in the business world. But what materials did you receive? Were there any secret materials?”
When Representative Heo said, “Could you please check the materials sent via email once more? Could you also tell us what discussions took place through the team leaders and department heads?”, Representative Kim replied, “I’m not the kind of person who would cheaply steal others’ technology and do something with it.”
Lucent Block reportedly provided confidential materials necessary for the business, including customer acquisition methods, know-how, cost-related aspects, security vendor recommendations, and Lucent Block’s strengths and weaknesses, under a non-disclosure agreement with NXT. NXT received the materials with the purpose of considering participation in the Lucent Block consortium.
Representative Heo, whose business is at a crossroads, also said, “Isn’t it obvious for a startup? We live by begging, and I haven’t seen my family even during Chuseok holidays for seven years. Although you were angry, I really had extreme thoughts.” However, Representative Kim said, “Why is that my fault? You are the one who creates business opportunities and does things.” This newspaper asked Representative Kim’s side for a comment on the call content on the 8th, but as of the 11th, no response had been received.
