Police Book Lee Choonseok Over Alleged Borrowed-Name Stock Trading... Accused of Violating Real Name Financial Transactions Act

The police have launched an investigation into Lee Choonseok, a lawmaker from the Democratic Party of Korea, who is suspected of trading stocks under borrowed names.

The Yeongdeungpo Police Station in Seoul announced on August 5 that Lee has been booked on charges of violating the Real Name Financial Transactions Act. Lee's aide, identified as Cha, who is the official holder of the stock account, has also been booked on charges of aiding and abetting.

Lee Chunseok, a member of the Democratic Party of Korea and chairman of the National Assembly's Legislation and Judiciary Committee, is checking a stock account opened under another person's name during a plenary session held at the National Assembly in Yeouido, Seoul on the 4th. Photo by The Fact

The police began their investigation after receiving a complaint requesting a thorough probe into suspicions that Lee engaged in borrowed-name transactions for the alleged purpose of creating slush funds.

Lee is accused of using his mobile phone in the National Assembly plenary chamber the previous day to trade stocks under Cha's name. The scene of Lee trading stocks was captured by a media outlet.

It was observed that Lee checked and partially traded stocks worth about 100 million won?including shares of Naver, KakaoPay, and LG CNS?using an account registered under his aide's name, not his own. According to the Public Official Ethics System, Lee's disclosed asset report contains no mention of any securities holdings.

Through a post on his social networking service (SNS) account, Lee stated, "I have no excuse for opening a stock trading screen in the National Assembly plenary chamber. I sincerely apologize for causing concern." However, he denied the allegations, adding, "I have never opened a stock account or conducted borrowed-name transactions under someone else's name."

Jung Cheongrae, the leader of the Democratic Party of Korea, has ordered an urgent fact-finding investigation by the party's ethics inspection team regarding Lee.