Lee Chun-seok (four-term, Jeonbuk Iksan-si Gap) of the Democratic Party of Korea, who was embroiled in allegations of 'stock proxy transaction', resigned from the party on the 5th. The lawmaker, who is the Chairperson of the Legislation and Judiciary Committee, was caught on camera by media outlets making stock transactions under the name of his aide in the National Assembly main conference hall. This incident occurred amid the government's push to invigorate the stock market as it aims to usher in the 'KOSPI 5000 era,' in a context where investor backlash has grown due to recent stock index declines and strengthened criteria for imposing capital gains taxes on major shareholders.
The lawmaker announced his resignation from the party on that day on Facebook, stating, "It is undeniably my fault," and submitted his resignation letter and the letter of resignation from the position of Chairperson of the Legislation and Judiciary Committee. He said, "I deeply apologize for the anger and discomfort caused by articles about me today," and noted, "I judged that I could no longer burden the new party leadership and the party." He also remarked, "I will fully accept the criticism and reproach directed at me," adding, "I will faithfully participate in the investigation regarding the allegations raised, and take time for reflection and introspection.
The lawmaker expressed his intention to resign from the party about seven hours after Jeong Cheong-rae, the new representative of the Democratic Party, announced plans for an urgent party-level investigation into the related allegations. Representative Jeong met with reporters after a closed Supreme Council meeting held in the National Assembly that day, stating, "Confirming the facts is important," and added, "Since the chairperson of the party's ethics monitoring committee is vacant, I instructed Secretary General Jo Seung-rae to carry out the investigation."
According to 'The Fact', the lawmaker displayed the mobile trading system (MTS) screen on his mobile phone in the National Assembly's main conference hall the previous day, conducting stock transactions through an account registered under the name of his aide, not himself. Specifically, it has been reported that he partitioned the transaction of 5 shares of Naver stock. The stock account held over 100 million won worth of stocks, including 537 shares of Kakao Pay, 150 shares of Naver, and 420 shares of LG CNS. The aide, the account holder, stated, "The lawmaker does not conduct stock transactions," adding, "He mistakenly took my phone, and briefly opened my stock screen there."
The National Assembly's Ethics Committee for Public Officials disclosed the asset details of the Chairperson in March this year, stating there were no stocks. If the claims of proxy stock transactions are confirmed as true, it would constitute a violation of the Financial Real Name Transaction Act. Notably, the lawmakers' transactions of Naver and LG CNS were included in the 'national representative artificial intelligence (AI)' development team announced by the government on the same day. The lawmaker serves as the head of the Economic Division 2 of the Presidential Committee on Policy Planning, which plays a role in the transition committee of President Lee Jae-myung.