President Lee Jae-myung on the 6th issued a directive for a thorough investigation, stating that he is "seriously aware of the issues" concerning Lee Chun-seok, a lawmaker who left the Democratic Party of Korea amid allegations of 'stock transactions' under another person's name. According to Spokesperson Kang Yu-jeong of the presidential office, while on summer vacation in Jodo, Geoje, the president conveyed urgent instructions to his aides that they should "swiftly ascertain the facts and conduct a fair and thorough investigation."
The president also directed that the lawmaker be immediately dismissed from the Presidential Committee on Policy Planning, Spokesperson Kang reported. The lawmaker heads the economic subcommittee of the Presidential Committee on Policy Planning, which carries out the role of a transition committee for the new government. This is where allegations arise that a senior ruling party official with policymaking authority engaged in transactions under another person's name using insider information.
In fact, the companies that the lawmaker transacted with, Naver and LG CNS, were included in the 'national representative artificial intelligence (AI)' development team announced by the government on the same day. This is a serious issue not only due to violations of the Financial Real Name Act but also because of the potential for conflicts of interest in related fields. The National Assembly's Public Officials Ethics Committee disclosed in March of this year that there are no stocks listed in the financial records of the chairperson.
At the party level, it has been decided to expel the lawmaker. Jung Cheong-rae, the new representative of the Democratic Party of Korea, stated at the party's Supreme Council meeting that morning, "Based on the regulations that allow for an investigation into the validity and completion of the grounds for discipline, we will proceed with the expulsion of the lawmaker." Initially, Representative Jung had announced intentions for a party-level investigation and severe disciplinary action regarding the lawmaker's allegations, but the situation made it impossible to impose discipline after the lawmaker submitted a resignation letter the previous day.
Representative Jung noted, "As the party leader, I feel a heavy sense of responsibility, and I will discuss measures to prevent recurrence to ensure that such an event does not happen again," adding, "If similar incidents occur in line with President Lee Jae-myung's declaration that those who play games in the Korean stock market will face disastrous consequences, we will take strict measures."