DP lawmaker accused of trading stocks under aide's name

Lee Choon-suak has been accused of using an aide's account for trading. The PPP demands accountability while Lee denies wrongdoing.

Lee Choon-suak, a Democratic Party lawmaker and chair of the National Assembly’s Legislation and Judiciary Committee, tries to walk past swarms of reporters on Aug. 5 after attending the National Assembly's plenary session. [NEWS1]

Lee Choon-suak, a Democratic Party lawmaker and chair of the National Assembly’s Legislation and Judiciary Committee, has been accused of trading under a borrowed name after being photographed checking an aide’s account during a legislative session.

The Fact reported Tuesday that Lee had used mobile trading platform in the Assembly chamber the day before. The app displayed an account not registered to Lee’s name, but that of his aide, surnamed Cha.

The account held over 100 million won ($72,000) worth of shares, including 537 shares of Kakao Pay, 150 of Naver, and 420 of LG CNS, the report said.

This was not the first time that Lee has been photographed checking a trading app. In October 2023, a photo taken during a parliamentary audit showed a similar scene, featuring Lee checking an account under Cha’s name.

Lee’s official asset disclosure, as of Dec. 31, 2023, listed no stock holdings for himself or his family. Under Korea’s Real-Name Financial Transactions and Confidentiality Act, all financial activity must be conducted under one's legal name. Violations can carry penalties of up to five years in prison or 50 million won in fines.

A photo published by The Fact shows Lee Choon-suak, a Democratic Party lawmaker and chair of the National Assembly’s Legislation and Judiciary Committee, checking a trading account registered under an aide's name during a plenary session on Aug. 4. [THE FACT]

The People Power Party (PPP) quickly moved to capitalize on the scandal.

Song Eon-seog, PPP's floor leader and the chairman of the emergency committee, held a news conference Tuesday, calling the incident “unacceptable” for the head of the Judiciary Committee.

“If the report is accurate, Lee violated the very laws he is meant to uphold,” Song said, adding that he would file a criminal complaint against Lee for violating financial regulations and to refer him to the parliamentary special ethics committee.

“Lee must step down from his position immediately,” he added.

PPP spokesperson Kwak Kyu-taek said the accusations strike at the heart of parliamentary credibility.

“The head of the Judiciary Committee, who is supposed to uphold justice, now stands accused of illegal trading,” Kwak said. “Is President Lee Jae Myung’s vision of a ‘Kospi 5000’ era meant for individual investors — or just for lawmakers like Lee?”

Other PPP lawmakers also raised conflict of interest concerns, pointing out that Lee Choon-suak not only serves as the head of the Judiciary Committee, but also serves as vice chair of the Presidential National Policy Planning Committee’s Economic Subcommittee, which handles AI policy.

Rep. Joo Jin-woo, a candidate for party leadership, noted that Naver and LG CNS, both present in the aide’s stock account, are tied to the government’s K-AI Foundation Model Task Force.

“It is highly likely that he had prior knowledge of favorable policy announcements,” Joo said. “Authorities should investigate whether this was insider trading.”

Former PPP leader Han Dong-hoon added, “The person steering the Lee Jae Myung government’s AI policies is allegedly trading AI-related stocks through an aide’s account.”

The Democratic Party moved quickly to contain the fallout.

Party leader Jung Chung-rae ordered an emergency investigation within two hours of the report. With the ethics oversight chief currently absent, Rep. Cho Seung-rae is overseeing the probe.

Rep. Lee Choon-suak of the Democratic Party, who chairs the National Assembly’s Legislation and Judiciary Committee, appears to check a trading account registered to another person’s name during a plenary session at the National Assembly in Yeouido, western Seoul, on Aug. 4. [THE FACT]

Lee Choon-suak has denied all allegations of illegal trading.

“There’s no excuse for checking a stock app during a plenary session,” he said in a statement released Tuesday. “I apologize for causing concern, but I have never conducted any stock trades under another person’s name.”

Speaking with reporters at the Assembly, he added, “The investigation will clear this up.”

Lee Choon-suak's aide Cha has not spoken publicly but told The Fact that Lee Choon-suak may have mistaken his phone for his own.

“He probably opened my stock app by accident during the session,” Cha said.

But the PPP remains unconvinced, pointing to the repeated nature of the allegations.

“Given there are now two separate incidents, we have to wonder whether this is habitual,” said Song.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY JO SU-BIN [yim.seunghye@joongang.co.kr]