Lee Chunseok Faces Allegations of Stock Transactions Under Aide's Name
Voluntarily Leaves Party and Resigns as Judiciary Committee Chair, But Controversy Grows
"Designing AI Policies While Investing? A Thorough Investigation Is Needed"
Amid allegations of stock transactions under borrowed names, Lee Chunseok, a member of the Democratic Party of Korea, has resigned as chairman of the National Assembly's Legislation and Judiciary Committee and announced his intention to voluntarily leave the party. In response, Cho Wonjin, leader of the Our Republican Party, stated, "He should resign from his parliamentary seat as soon as possible." During an interview with YTN Radio's "News Fighting" on August 6, Cho said, "Following the allegations of abuse of power by Kang Sunwoo's aide, if an aide is involved in nominee transactions, doesn't that mean they would be accomplices in a crime?"
Lee Chunseok, a member of the Democratic Party of Korea embroiled in the 'proxy transaction controversy,' is voting on a motion to end unlimited debate at the plenary session held at the National Assembly on the 5th. Photo by Kim Hyunmin
Cho further commented, "This issue will not only affect the Lee Jaemyung administration or the Democratic Party, but will also spark repercussions across the entire National Assembly." He added, "This is an opportunity to conduct a comprehensive investigation into the integrity, morality, and corruption of all lawmakers." He continued, "Investigative agencies should thoroughly disclose the facts to the public, regardless of party affiliation, so that the National Assembly can move toward being ranked among the most transparent institutions. That is true reform."
Regarding Lee's role as head of the Economic Policy Division 2 of the National Policy Planning Committee, where he was responsible for formulating artificial intelligence (AI) policies, Cho said, "AI is one of the core policy issues of the Lee Jaemyung administration. But now we hear that nearly 100 million won was invested in companies like Kakao, Naver, and LG? That is simply beyond common sense." He added, "And this was done under an aide's name? If there are lawmakers for whom this is possible, the National Assembly and political parties must step forward to conduct a thorough investigation and disclose the facts to the public to ensure this never happens again."
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 at the plenary session held at the National Assembly in Yeouido, Seoul on the 4th. Photo by The Fact
On the morning of August 5, The Fact released a photo showing Lee at the plenary session of the National Assembly on August 4, apparently conducting stock transactions under another person's name, raising suspicions of nominee trading. The photo showed Lee checking real-time stock prices and seemingly making split purchases and order modifications using a stock account registered under his aide's name. The traded stocks included Naver and LG CNS, and the account held approximately 100 million won worth of stocks, including Kakao Pay. In the asset disclosure released by the National Assembly's Public Officials Ethics Committee in March this year, no stocks were listed under Lee's name.
Immediately after the report, Lee stated via social media, "There is no excuse for opening the stock trading screen during the plenary session," but insisted, "I have never opened a stock account under another person's name or engaged in nominee trading." That afternoon, the police received a complaint requesting a thorough investigation into suspicions that Lee had created slush funds, and subsequently booked both Lee and his aide on charges of violating the Real Name Financial Transactions Act.
Jeong Chungrae, leader of the Democratic Party of Korea, is deep in thought during the plenary session held at the National Assembly on the 5th. Photo by Kim Hyunmin
Upon learning of the situation, Jeong Cheongrae, leader of the Democratic Party, ordered an urgent fact-finding investigation into Lee. However, it was reported that Lee announced his intention to voluntarily leave the party just six hours after Jeong's order. He also resigned from his position as chairman of the Legislation and Judiciary Committee. Spokesperson Kwon Hyangyeop said, "Just as the president has expressed a strong determination to tolerate no illegal transactions in Korea's stock market, Representative Jeong also planned to take strict action based on the investigation results." He added, "We deeply apologize to the public for causing concern with such an unfortunate incident, and Representative Jeong said he feels a heavy sense of responsibility as party leader."
The People Power Party announced that it would file a complaint against Lee with the National Assembly's Special Ethics Committee and pursue criminal charges for violations of the Real Name Financial Transactions Act, among others. The party also stated that Lee's departure from the party was "an inevitable consequence of his illegal actions," and emphasized, "The now-vacant chairmanship of the Legislation and Judiciary Committee should be taken over by the People Power Party."
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