Lee Chun-seok, an independent lawmaker who is under suspicion for conducting stock transactions under borrowed names, has been referred to the prosecution.
According to coverage by The Asia Business Daily, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency referred Assemblyman Lee without detention on December 23 on charges of violating the Real Name Financial Transactions Act, the Electronic Financial Transactions Act, the Public Service Ethics Act, and the Improper Solicitation and Graft Act.
Assemblyman Lee is accused of conducting stock transactions worth several billion won over approximately three years using an account under the name of his aide, identified as Mr. A. Given that Lee's assets during this period amounted to about 400 million won, the police have been tracking the source of more than 1 billion won used for actual stock investments.
During the investigation, the police uncovered additional allegations. Assemblyman Lee is accused of receiving and using a mobile phone and password linked to a securities account under another person's name. He is also suspected of failing to sell or place in a blind trust stocks worth over 30 million won while serving as a member of the National Assembly and as Secretary General of the National Assembly. It was also confirmed that he received congratulatory and condolence payments exceeding 1 million won on four separate occasions.
However, the police found no evidence related to the Prevention of Conflict of Interest Act or the use of undisclosed information under the Capital Markets Act. The trading patterns also differed from typical insider trading, leading to a decision not to refer these charges. It is reported that Assemblyman Lee invested a total of about 1.2 billion won across multiple stocks over several years, with more than 90% of these investments resulting in losses.
The investigation began in August when the media captured Assemblyman Lee trading AI-related stocks through an account under his aide's name during a plenary session of the National Assembly. During the police investigation, Lee stated, "The funds were my personal money, raised from publication event proceeds and congratulatory and condolence payments."
The allegation of false asset reporting has been classified as an administrative matter subject to a fine and will be reported to the National Assembly’s Public Service Ethics Committee.
Two of Assemblyman Lee's aides have also been referred to the prosecution. Aide A is accused of providing his account and mobile phone to Assemblyman Lee, and instructing Aide B to destroy documents that were stored in the office.
Aide B, following Aide A’s instructions, actually destroyed the documents and has been referred on charges of evidence destruction. The documents in question were work-related and reportedly not directly connected to the current allegations of using undisclosed information.
Four acquaintances of Assemblyman Lee have also been referred for providing congratulatory or condolence payments exceeding 1 million won on a single occasion.
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