Independent lawmaker Lee Chun-seok (four terms, Iksan-gap, North Jeolla), who is suspected of using borrowed-name stock transactions, has been handed over to prosecutors.
The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit said on the 23rd that it referred Lee without detention on four charges, including violations of the Real Name Financial Transactions Act, the Electronic Financial Transactions Act, the Public Service Ethics Act, and the Improper Solicitation and Graft Act.
Lee is suspected of conducting stock transactions worth 1.2 billion won for several years while serving as a National Assembly member and as secretary general of the National Assembly, using a securities app under the name of his aide, a person surnamed Cha. On Aug. 4, at a National Assembly plenary session, media cameras captured Lee making stock transactions under Cha's name, setting off controversy.
Police also applied charges that while serving as a sitting lawmaker and as chair of the Legislation and Judiciary Committee, Lee held more than 30 million won in stocks without placing them in a blind trust and accepted more than 1 million won in congratulatory and condolence money on four occasions.
However, among the accusations against Lee, the police did not refer the charges of violating the Conflict of Interest Prevention Act and using undisclosed information under the Financial Investment Services and Capital Markets Act. After the Ministry of Science and ICT released a list of national "AI" corporations, which included stocks such as Naver and LG CNS that Lee was suspected of transacting, allegations arose that he used undisclosed information. Lee admitted to borrowed-name transactions but has denied the allegation in question.
Based on evidence seized in searches, confirmation of financial transaction histories of those involved including Lee, and analysis of transaction patterns, police said no leads indicating the use of undisclosed information were found. In particular, Lee reportedly prepared 1.2 billion won from congratulatory and condolence money and revenue from a book publication commemorative association and spread investments of hundreds of thousands to millions of won across many stocks, but lost more than 90% of the invested amount.
Police also referred Cha, the aide who lent his name to Lee, to prosecutors on charges including violations of the Real Name Financial Transactions Act, the Electronic Financial Transactions Act, the Telecommunications Business Act, and abetting destruction of evidence. Cha was found to have instructed another aide, identified as A, to destroy documents kept in the office. A was also referred on charges of destruction of evidence.
The destroyed documents are unrelated to Lee's alleged use of undisclosed information, but police are said to have applied the charge of destruction of evidence on the grounds that the documents were eliminated in preparation for the investigation. Four private acquaintances who provided Lee with more than 1 million won each in congratulatory and condolence money were also referred on charges of violating the Improper Solicitation and Graft Act.