President Lee Jae-myung has ordered a full investigation into allegations that Rep. Lee Choon-suak engaged in stock trading under a borrowed name while attending a National Assembly plenary session. The Presidential Committee on Policy Planning, where Lee also held a key post, has called for his dismissal, and the ruling Democratic Party (DP) has pledged to expel him from the party. The ruling bloc’s rapid response appears aimed at containing the political fallout.
But these measures alone may not be sufficient. President Lee, who vowed to usher in a “KOSPI 5000 era,” once declared that anyone attempting to exploit the Korean stock market would face financial ruin. Mishandling this case risks inflicting lasting damage on public trust—not only in the president but in his broader economic agenda. Without a decisive response, the administration could face growing perceptions that close aides are free to manipulate financial markets with impunity.
Lee Choon-suak was one of Lee Jae-myung’s closest confidants, serving as chief of staff during the presidential campaign. Following the election, he was appointed chair of the National Assembly’s Legislation and Judiciary Committee and also led a subcommittee on artificial intelligence under the policy planning office—an entity that functioned as the de facto presidential transition team.
The allegations center on stock transactions Lee allegedly conducted on the day the government launched a major initiative to develop domestic artificial intelligence (AI) foundation models. He is suspected of trading shares in companies participating in the project, including Naver, which surged more than 6% in intraday trading on the day of the announcement.
If substantiated, the accusations represent a clear conflict of interest. If non-public information was used in the transactions, the case would constitute a textbook example of influence-peddling. If the 100 million won worth of shares purchased through his aide’s account are determined to belong to Lee, the failure to disclose them would violate the Public Service Ethics Act. Legal experts suggest the lawmaker could face four to five separate charges. Despite the seriousness of the case, the investigation is currently in the hands of the police. Even with President Lee’s public call for a thorough inquiry, skepticism remains over whether law enforcement will fully pursue a probe into one of the president’s closest allies.
Investigators are expected to weigh the president’s intent carefully. Earlier this year, Lee appointed Kim Nam-kuk—who was found to have traded cryptocurrency during a parliamentary session addressing the Itaewon disaster—as secretary for digital communication. Kim, also considered a Lee loyalist, resigned from the party amid public backlash but was reinstated shortly thereafter. The entire episode unfolded in full view of the public.
The DP, in advocating for the so-called “three special counsel teams,” accused law enforcement under former President Yoon Suk-yeol of shielding those in power from scrutiny and insisted that independent investigations were necessary to ensure neutrality. On that basis, the party moved to appoint all three special prosecutors without the participation of the main opposition People Power Party (PPP).
Now, under the current administration, the prosecution service, police, and Corruption Investigation Office for High-ranking Officials (CIO) all fall under DP influence. This time, the investigation targets a high-profile ruling party figure. By the DP’s own standards, the case involving Lee Choon-suak warrants the appointment of a special counsel nominated by the opposition—not the ruling bloc. Should President Lee take that step and reassert internal discipline, it could mark a turning point toward a more credible and successful administration.