Investigation initiated by President, centered around lawmaker due to accusations of stock trading using assistant's account
Lawmaker Lee Choon-suak is under investigation in South Korea for allegedly trading stocks using his aide’s account during a National Assembly plenary session. He was photographed executing multiple stock trades on a mobile app registered to his aide, involving shares in major companies such as Kakao Pay, Naver, and LG CNS, with transactions exceeding 100 million won (approximately $72,000)[2][3]. This practice, known as proxy or nominee account trading, is illegal under South Korean law and can result in up to five years imprisonment or fines.
Lee, who was chair of the National Assembly’s Legislation and Judiciary Committee and involved in AI policy through the State Affairs Planning Committee, resigned from the Democratic Party after media exposure and amid escalating political pressure. The opposition People Power Party has condemned his actions as a conflict of interest and a betrayal of small investors, calling for his resignation and legal consequences[1][3].
The scandal has fueled public anger towards the ruling bloc, especially since the government and the Democratic Party unveiled a tax reform plan to tighten capital gains tax rules for large shareholders, sending the Kospi sharply lower[4].
President Lee Jae-myung has ordered a full investigation and the ruling Democratic Party pledged to expel Lee Choon-suak to contain the fallout. The incident threatens to undermine public trust not only in Lee Choon-suak but also in the administration’s economic and AI agendas, especially given Lee’s close ties as a former presidential campaign chief of staff and his prominent political roles[1][4].
Investigations have revealed that Kwak notes that Naver and LG CNS, whose shares appeared in the aide's account, were named as key participants in the government’s official AI development initiative on the same day[5]. This has raised suspicions of insider trading regarding Rep. Lee Choon-suak.
Lee has since withdrawn from the Democratic Party and resigned as chair of the National Assembly's Legislation and Judiciary Committee[6]. President Lee Jae Myung has ordered the dismissal of Rep. Lee Choon-suak from his position as head of the economic subcommittee[7]. The Democratic Party aims to restore discipline among lawmakers and ensure that such incidents do not happen again.
However, Rep. Song Eon-seog, interim leader of the People Power Party, has stated that Lee's resignation from his legislative post does not resolve the issue and that they will file a complaint with the National Assembly’s Ethics Committee and pursue criminal charges against Lee[8]. The investigation is ongoing, and authorities have conducted office raids as part of the probe.
References:
- Yonhap News Agency
- The Korea Herald
- The Fact
- Reuters
- Korea JoongAng Daily
- The Korea Times
- Yonhap News Agency
- The Korea Times
The scandal surrounding Rep. Lee Choon-suak's alleged illegal proxy account trading, involving companies like Kakao Pay, Naver, and LG CNS, has raised concerns about conflicts of interest in South Korea's policy-and-legislation sphere and politics. The opposition People Power Party has criticized Lee's actions and called for legal consequences, as this incident could negatively impact public trust in the administration's general-news agendas, including AI policy and economic planning.
