Senior lawmaker's resignation not enough for PPP: 'We need a full investigation'

Lee Choon-suak, a four-term lawmaker from the Democratic Party, resigned amid insider trading allegations. The PPP called for investigation into broader ethical issues within the ruling party and commission.

Rep. Lee Choon-suak of the Democratic Party walks out of the main hall of the National Assembly after a vote during a plenary parliamentary session in Yeouido, western Seoul, on Aug. 5. [NEWS1]

Lee Choon-suak, a four-term lawmaker from the Democratic Party, resigned from both the party and his position as chair of the Legislation and Judiciary Committee after being accused of insider trading with another person's account.

His abrupt departure drew sharp criticism from the People Power Party (PPP), which dismissed it as a mere act of “cutting off the tail” — a tactic to shield broader wrongdoing without addressing systemic issues.

The PPP has intensified its political offensive, focusing on not only the alleged trading, but also Lee’s influential policy role. Lee previously served as head of the economy subcommittee within the presidential National Policy Planning Committee, where he was directly involved in shaping AI-related national strategies.

“On the very day the Ministry of Science and ICT announced the national AI champion project, Lee bought shares in one of the participating firms,” said PPP emergency committee head and floor leader Rep. Song Eon-seog at a press briefing Wednesday. “This is a clear case of conflict of interest and a breach of public ethics. President Lee Jae Myung must directly address this serious breach of public trust.”

The companies Lee Choon-suak purchased shares in — Naver and LG CNS — were among the five teams selected for the “National AI Project” announced Tuesday by the Ministry of Science and ICT. These companies will receive government support to develop Korea’s AI foundation model.

On Monday, the day Lee Choon-suak’s trades were detected, Naver’s share price surged more than 6 percent.

Song said the PPP would file a complaint with the National Assembly’s ethics committee and pursue criminal charges, adding, “It’s unlikely that Lee Choon-suak was the only one who accessed this information.

“We need a full investigation into everyone who received, relayed or handled related information,” Song added. “The commission is tainted with conflicts of interest and political arrogance. It must be disbanded immediately.”

People Power Party lawmakers submit a motion for disciplinary action against Democratic Party Rep. Lee Choon-suak at the National Assembly in Yeouido, western Seoul, on Aug. 6. [NEWS1]

The PPP claims the scandal may not be limited to Lee Choon-suak’s personal actions but could point to broader problems within the commission and the ruling bloc.

“Those involved in other major government policies could exploit a wide range of undisclosed industrial information for personal gain,” a first-term PPP lawmaker noted.

Some argue that others may have also profited by purchasing stocks expected to benefit from government policy before such information became public. Some are arguing for a comprehensive investigation, expanding the scope to include all National Assembly members.

“We need to investigate whether any other commission members used confidential policy information to preemptively buy shares or theme stocks,” PPP Rep. Joo Jin-woo wrote on Facebook. “Any lawmakers operating hidden assets under aides’ names must be stripped of their office.”

Joo also proposed expanding the three ongoing special counsel investigations — concerning insurrection, former first lady Kim Keon Hee and the death of a Marine — to include this scandal, forming a so-called “fourth special counsel.”

People Power Party lawmakers submit a motion for disciplinary action against Democratic Party Rep. Lee Choon-suak at the National Assembly in Yeouido, western Seoul, on Aug. 6. [NEWS1]

Suspicion also surrounds the fact that the transactions were made under the name of Lee Choon-suak's aide surnamed Cha, who has held posts in the DP's North Jeolla chapter. Lee Choon-suak was also accused of trading under Cha's name during a parliamentary audit last year.

“The law requires aides to report asset changes, so it’s highly questionable why someone would risk using their name for such trades,” said a PPP official. “There is reason to suspect that Cha may have served as a proxy not just for Lee Choon-suak, but for other politicians’ assets as well.”

Some opposition lawmakers are pressing for a broader investigation into both Lee Choon-suak's and Cha’s assets. A screen capture of Lee Choon-suak's mobile phone taken Monday showed roughly 100 million won ($71,950) worth of stocks — including 537 shares of Kakao Pay, 150 of Naver and 420 of LG CNS — held in Cha’s securities account.

“It’s not just the 100 million won,” said one PPP lawmaker. “If you include cash balances and other holdings, we don’t know how many more policy-linked stocks could emerge. A comprehensive investigation is needed.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY JANG SEO-YUN [lim.jeongwon@joongang.co.kr]