Lee Chun-seok, the chair of the Legal Affairs Committee of the National Assembly and a member of the Democratic Party of Korea, denied the allegations of 'proxy transactions,' stating, "There has never been a proxy transaction." He noted that he would diligently engage in the party's fact-finding investigation.
According to a report by The Fact, the lawmaker conducted a partitioning transaction of Naver stocks using his mobile phone during the National Assembly's plenary session on 4th. The larger controversy is that the stock account he was monitoring belonged to his assistant, a person surnamed Cha. He has been swept up in the 'proxy stock transaction allegations.'
In the asset disclosure status released on March 27, which was published under the Public Officials Ethics System, there were no stocks owned by him or his family. In contrast, the investment amount in the stock account owned by Mr. Cha, which the lawmaker transacted, exceeded 100 million won.
The Financial Real Name Act strictly limits proxy stock transactions. Those engaged in proxy transactions for illegal purposes face up to five years in prison or fines of up to 50 million won.
Democratic Party leader Jeong Cheong-rae immediately ordered an emergency fact-finding investigation into the lawmaker's allegations as the controversy spread. He told reporters that "Confirming the facts is important for now," adding, "Since the head of the ethics monitoring division is vacant, I told the secretary general to do it."
The People Power Party stated that it would refer the lawmaker to the National Assembly's Ethics Committee in relation to the proxy transaction allegations and file criminal charges for violations of the Financial Real Name Act and other laws. It also urged the chair of the Legal Affairs Committee, who should be a leader in upholding the rule of law, to resign for violating current law.