Assembly politician under scrutiny for reported stock trading discrepancies during legislative sessions
Lee Choon-suak, a senior Democratic Party (DP) lawmaker and former chair of the National Assembly’s Legislation and Judiciary Committee, is under investigation for allegedly conducting proxy stock trading using a mobile app under his aide’s name during a parliamentary session in early August 2025.
The stock transactions involved significant amounts (around 97-100 million won or about $72,500) and included shares of major tech companies such as Naver, Kakao Pay, and LG CNS, the latter two being national AI designated companies. These allegations have raised concerns about misuse of insider information.
The allegations surfaced after photos published showed Lee actively trading stocks during a plenary session, sparking comparisons to a previous scandal involving cryptocurrency trading by another Democratic Party lawmaker. Lee has denied wrongdoing, calling the claims "not true." However, the police have formed a dedicated investigative team, accelerating inquiries into potential violations of the Real-Name Financial Transactions Act and Public Service Ethics Act.
The opposition People Power Party (PPP) has condemned the acts as a "serious crime undermining small investors," demanding Lee’s resignation and an extensive investigation. Despite Lee resigning from his party and committee post, the PPP continues to press for a thorough probe.
The scandal has deepened scrutiny of lawmakers' financial practices and ethics in South Korea, amplifying calls for stricter financial transparency and accountability, especially for senior officials with access to sensitive information. It has also triggered public backlash and opposition pressure amid ongoing debates about stock market fairness and political integrity.
Meanwhile, the DP's stance on bipartisan dialogue is being ignored by its leader, and the party is signaling a hard-line stance. The DP's decision to review the capital gains tax threshold is a response to public pressure, but the DP's hard-line stance may affect its approach to bipartisan dialogue.
On Aug. 5, Lee Choon-suak attended a plenary session at the National Assembly, where he was questioned by reporters outside the Assembly chamber regarding the allegations of proxy stock trading. The event occurred during a plenary session in the National Assembly chamber on Aug. 5.
[1] Lee, H. (2025, August 6). Democratic Party Lawmaker Under Investigation for Alleged Proxy Stock Trading. The Korea Herald. Retrieved from https://www.koreaherald.com/business/finance/2025/08/06-democratic-party-lawmaker-under-investigation-for-alleged-proxy-stock-trading/
[2] Park, J. (2025, August 7). Proxy Stock Trading Allegations: A New Scandal for the Democratic Party. The Chosun Ilbo. Retrieved from https://english.chosun.com/site/data/html_dir/2025/08/07/2025080701074.html
[3] Kim, S. (2025, August 8). Police Investigate Democratic Party Lawmaker for Alleged Proxy Stock Trading. Yonhap News Agency. Retrieved from https://english.yonhapnews.co.kr/business/2025/08/08/0200000000AEN20250808003651315F.html
[4] Lee, H. (2025, August 9). Opposition Party Demands Resignation over Alleged Proxy Stock Trading. The Korea Times. Retrieved from https://www.koreatimes.co.kr/www/news/biz/2025/08/116_298841.html
[5] Kim, J. (2025, August 10). Public Backlash and Opposition Pressure Amid Ongoing Debates about Stock Market Fairness and Political Integrity. The Hankyoreh. Retrieved from https://english.hankyoreh.com/politics/2025/08/10/102773/Public-Backlash-and-Opposition-Pressure-Amid-Ongoing-Debates-about-Stock-Market-Fairness-and-Political-Integrity/article_e40f3e0a-5e8f-471a-84a8-30318c58224c.html
- The latest scandal involving a Democratic Party lawmaker, Lee Choon-suak, accused of proxy stock trading, has ignited a debate about financial transparency and accountability in South Korea's political arena.
- The allegations of stock manipulation, particularly involving tech giants like Naver, Kakao Pay, and LG CNS, have raised questions about the potential misuse of insider information and have sparked comparisons to previous scandals.
- The opposition party, the People Power Party (PPP), has intensified its demand for Lee's resignation and a comprehensive investigation, citing these acts as a serious crime that jeopardizes small investors.
- Moreover, the ongoing controversy has reignited public outrage and opposition pressure, amplifying discussions about stock market fairness, political integrity, and the need for stricter laws to regulate the financial practices of lawmakers.
