Latest news with #LeeChoon-suak
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Korea Herald
4 days ago
- Business
- Korea Herald
[Editorial] Rules for some
Rep. Lee Choon-suak's stock trade under aide's name sparks public outcry, legal probe Rep. Lee Choon-suak, a four-term lawmaker from South Korea's ruling Democratic Party of Korea, faces public fury and political fallout following allegations that he engaged in stock trading under a borrowed name — potentially implicating him in insider trading and false asset reporting. The scandal erupted after local media photographed Lee operating a mobile trading app during a parliamentary session on Monday. The account was registered under his aide's name. Lee was seen transacting shares in companies including Naver, KakaoPay and LG CNS — all designated as key players in the government's newly announced artificial intelligence initiative that same day. Lee's conduct presents a clear challenge to the credibility of the country's financial disclosure regime and ethical oversight. As head of the economic subcommittee on AI policy within the Presidential Committee on Policy Planning, Lee held privileged access to information that could materially affect markets. His trading activity — allegedly via an aide's account — raises serious concerns about conflicts of interest. If confirmed, such activity would constitute violations of both the Capital Markets Act and the Financial Real Name Act. The former prohibits trading based on nonpublic information, while the latter mandates that securities transactions be conducted under the true owner's name to prevent concealment. Furthermore, Lee's asset disclosure filed in late 2024 declared no stock holdings, contradicting reports that assets exceeding 100 million won ($72,000) were held in the aide's account. This would breach the Public Official Ethics Act, which requires officials to fully disclose their assets. Lee resigned from the Democratic Party on Tuesday night amid mounting pressure. The party, seeking to contain the damage, initiated expulsion proceedings. He was also removed from his post on the Presidential Committee and replaced as chair of the National Assembly's Legislation and Judiciary Committee — a powerful role he had held until the scandal broke. The police have formed a task force of legal and financial experts to investigate. Civic groups have filed criminal complaints, while lawmakers from the main opposition People Power Party are calling for the appointment of a special prosecutor, citing doubts that a police-led probe will be sufficient to uncover systemic misconduct. This is not the first time ethical breaches have surfaced within the National Assembly in connection with lawmakers' financial dealings. In 2023, Rep. Kim Nam-kook of the Democratic Party was found to have traded cryptocurrency during parliamentary sessions. While that case led to his temporary resignation, he ultimately returned to office, underlining the soft consequences Korean lawmakers often face for violating ethical norms. The current regulatory framework is riddled with loopholes. Lawmakers can avoid declaring stock holdings if assets are sold shortly before disclosure deadlines, and the system fails to track holdings registered under third parties' names. In contrast, more stringent regimes elsewhere impose real-time reporting obligations and broader definitions of beneficial ownership. President Lee Jae Myung has called for a swift investigation, warning during a recent visit to the Korea Stock Exchange that 'playing with stocks will result in ruin.' Yet this scandal, centered on a senior policymaker allegedly trading from the floor of parliament, directly undermines his administration's emphasis on financial transparency and ethical governance. If the National Assembly hopes to restore public trust, it must go beyond symbolic dismissals. Reforms should include prohibiting lawmakers from trading in sectors where they hold policymaking authority, requiring real-time public reporting of trades, and empowering independent bodies to monitor and enforce ethical conduct. The case of Rep. Lee is more than a personal lapse. It reflects a political culture that continues to tolerate opaque asset reporting and blurred lines between public service and private interest. To move forward, South Korea's legislature must demonstrate that ethical standards are not optional and accountability applies even to its most senior members.
Korea Herald
7 days ago
- Politics
- Korea Herald
Ruling party lawmaker accused of trading stocks under someone else's name
South Korea's ruling Democratic Party of Korea launched an internal probe Tuesday after a senior lawmaker was photographed appearing to trade stocks under someone else's name during a parliamentary session. This sparked speculations that the lawmaker might have failed to fulfill his duty to declare assets as a public official. Local media published an image showing Rep. Lee Choon-suak, chair of the National Assembly's Legislation and Judiciary Committee, using his phone to access trading windows for Naver and LG CNS shares. The account name did not match his, prompting allegations of borrowed-name trading. Rep. Joo Jin-woo of the main opposition People Power Party said he would file a criminal complaint, accusing Lee of violating the Real-Name Financial Transactions Act and the Public Service Ethics Act. 'Borrowed-name stock trading is a serious crime that exploits retail investors,' Joo said, adding that omitting such assets from mandatory disclosures could call Lee's qualifications into question. The Legislation and Judiciary Committee is considered one of the most influential in South Korea's Assembly, serving as the final gatekeeper for bills heading to a plenary vote at regular sessions. The Democratic Party's ethics oversight panel will lead the internal inquiry.
Korea Herald
01-08-2025
- Business
- Korea Herald
Pro-labor, broadcast reform bills to be put to vote next week
Several contentious bills, including one pro-labor bill and three aimed at reducing government influence over public broadcasters, will be put to a vote at the National Assembly next week after a parliamentary standing committee approved them on Friday. The Assembly's Legislation and Judiciary Committee, led by the ruling Democratic Party of Korea, voted in favor of passing the three broadcasting bills and the pro-labor bill dubbed the 'Yellow Envelope Law' during a meeting. All four bills are sponsored by the ruling party and the liberal Lee Jae Myung administration. With 16 of the 18 committee members in attendance, all bills passed after 10 voted in favor, with six abstentions. Of the total 18 members, 10 are lawmakers of the ruling party, including the committee's chair, Rep. Lee Choon-suak of the Democratic Party. Seven are main opposition People Power Party lawmakers, while one is a member of the minor progressive Rebuilding Korea Party. Committee members belonging to the People Power Party vocally protested during Friday's vote. Democratic Party members, however, refused to hold a debate over the bills despite the main opposition's request. The bills will be put to a vote during a parliamentary plenary session scheduled for Monday. The People Power Party announced plans to launch a filibuster to delay the passage of the legislation. The 'Yellow Envelope Law' is a revision to the Trade Union and Labor Relations Adjustment Act that focuses on restricting companies from claiming damages against legitimate disputes involving labor unions. The nickname stems from the donations that the public sent to support SsangYong Motor workers in 2014, after they were laid off and faced court orders to compensate their employer for the damages made to company properties during a strike. South Korean business lobby groups, the American Chamber of Commerce in Korea and the European Chamber of Commerce have all voiced concerns that the passage of the bill could prompt foreign companies to withdraw from the Korean market. Meanwhile, the amendments to the Broadcasting Act, the Foundation for Broadcast Culture Act and the Korea Educational Broadcasting System Act aim to increase the number of board directors at public broadcasters KBS, MBC and EBS, respectively. The set of bills quintessentially seeks to reform the governance structure of the public broadcasters by reducing the government and the National Assembly's power to name the board directors. The opposition claims the restructuring aims to reinforce the influence of labor unions. All four bills were previously vetoed by former President Yoon Suk Yeol when he was in office, after the Assembly at the time, led by then-main opposition Democratic Party, passed them.
