Proxy trading scandal

[Anchor]

If the allegations of proxy stock trading by lawmaker Lee Choon-suak are true, it would not only be a violation of existing laws but also raise serious concerns about conflict of interest—given that a key policy designer purchased shares in companies set to benefit from those policies.

Lee is also facing backlash for his apparent hypocrisy, having harshly criticized others for similar behavior in the past.

Reporter Kim Cheong-yoon has more.

[Report]

During the confirmation hearing for Constitutional Court Justice nominee Lee Mi-son in 2019.

Lee Choon-suak, who was a member of the hearing committee, criticized the nominee for her alleged stock trading under a false name.

[Lee Choon-suak/Then Democratic Party member/Apr. 2019: "Although the nominee's husband traded stocks, the nominee is clearly responsible for lending her name for the stock transactions."]

Two years earlier, during the confirmation hearing for Justice nominee Lee You-jung, he criticized allegations of illegal stock investments using undisclosed information.

[Lee Choon-suak/Then Democratic Party member/Aug. 2017: "'Do not tie your shoelaces in the cucumber field'—at least when you become a public official, you should avoid such misunderstandings..."]

Since then, this lawmaker has proposed legislation to strengthen penalties for 'false name transactions' four times.

However, he now faces expulsion from his party due to allegations of trading stocks under a false name.

The stocks he is believed to have traded include LG CNS and Naver, which are among the companies designated by the government as national representatives in AI.

As the head of a subcommittee on science and artificial intelligence under the policy planning committee and also the chair of the National Assembly's Legislation and Judiciary Committee, there is a significant potential for 'conflict of interest.'

If he engaged in false name trading, it could violate the Real Name Financial Transactions Act, and using undisclosed information could also constitute a violation of the Capital Markets Act.

Using the name of an aide in a position of power for stock trading could lead to another controversy over 'abuse of power.'

The Presidential Committee on Policy Planning has moved to distance itself from Lee by dismissing him from his subcommittee position.

President Lee Jae Myung, who is currently on vacation, has stated that he is "seriously aware of the situation" and has instructed to swiftly ascertain the facts and conduct a thorough investigation, according to the presidential office.

This is KBS News, Kim Cheong-yoon.