Party in power plans to remove legislator due to accusations of stock dealings under a loaned identity
In a series of events that have rocked the political landscape of South Korea, Representative Lee Choon-suak is embroiled in a major scandal involving allegations of stock trading under a borrowed name and insider trading using privileged government information.
On August 4, 2025, a local media outlet released photos showing Lee operating a stock trading app on his phone underneath the desk during a parliamentary session, trading shares of companies such as Naver, LG CNS, and Kakao Pay held under the name of his aide, Mr. Cha. The trades coincided closely with a government announcement naming some of these companies as leads for AI development projects, raising suspicions of insider trading and abuse of non-public government information given Lee’s prominent policymaking roles related to AI.
Lee initially apologised for opening the app but denied making trades through another person's account. However, the ruling Democratic Party (DP) expelled Lee after he voluntarily quit the party amidst the scandal, and party investigators and police launched probes into possible violations of the Real-Name Financial Transactions Act and Public Service Ethics Act. On August 11, 2025, police raided Lee's parliamentary office to collect evidence regarding the stock trading allegations as part of an ongoing investigation.
Opposition parties have condemned Lee’s actions as serious crimes undermining retail investors and demanded his resignation from key legislative roles. The heightened public backlash from South Korea’s large retail investor community reflects wider concerns about corruption and insider trading among lawmakers.
Consequences for Lee include resignation from the DP and dismissal from his leadership role on the National Assembly Legislation and Judiciary Committee and the AI policy subcommittee. He is also facing formal investigations by the Seoul Metropolitan Police into multiple incidents of trading stocks under borrowed names, possibly violating financial laws and conflict-of-interest regulations.
The DP's decision to proceed with measures to expel Lee still effectively bars him from returning to the party in the future. DP leader Jung Chung-rae expressed deep concern and shame over the allegations. To fill the vacancy left by Lee's departure, the DP has appointed six-term lawmaker Choo Mi-ae to head the National Assembly's legislation and judiciary committee. An ethics team was launched by the DP to investigate Lee's allegations.
The DP's ethics panel will continue to investigate Lee's allegations, despite his departure from the party. The party initially planned to expel Lee, but his departure prevented immediate disciplinary action. The National Assembly's legislation and judiciary committee is now headed by Choo Mi-ae, who has been appointed to fill the vacancy left by Lee's departure.
President Lee Jae Myung and the administration have pledged to strictly punish any future misconduct related to stocks, aiming to reinvigorate the stock market via transparent trading practices. The DP's pledge to punish any similar violations in the future underscores the party's commitment to upholding the highest standards of integrity and accountability in politics.
[1] Local Media Outlet A [2] Local Media Outlet B [3] National News Outlet [4] Opposition Party Statement [5] DP Statement
- The ongoing controversy surrounding Representative Lee Choon-suak's alleged insider trading has sparked heated debates in the realm of policy-and-legislation, politics, and general-news, after a local media outlet released incriminating evidence and opposition parties demanded transparency and accountability.
- The South Korean political landscape is witnessing significant shifts as a result of the stock trading scandal plaguing Representative Lee Choon-suak, with the ruling Democratic Party taking action and local media outlets reporting extensively, contributing to a broad discussion encompassing policy-and-legislation, politics, and general-news.
