Lee Chun-seok denies charges at first trial over ‘stock trading under aide’s name,’ saying he started as a pastime to relieve boredom

[Financial News] Independent lawmaker Lee Chun-seok, who was indicted on charges of trading stocks under an aide’s name, denied the main charges at his first hearing.
The Seoul Southern District Court’s Criminal Division 3, presided over by Judge Han Jeong-seok, held the first hearing on the 11th for Lee, who was indicted without being detained on charges including violations of the Act on Real Name Financial Transactions and Guarantee of Secrecy, the Electronic Financial Transactions Act, the Public Service Ethics Act, and the Improper Solicitation and Graft Act. Lee’s aide, identified by the surname Cha, senior secretary Lee, and four acquaintances accused of giving Lee condolence or congratulatory money exceeding the legal limit were also indicted.
According to the Prosecution Office, Lee is accused of receiving from Cha a cellphone with a securities trading app installed and its password in March 2020, when he was serving as a member of the 20th National Assembly, and in June 2024, shortly after taking office as a member of the 22nd National Assembly, and then trading stocks through an account in Cha’s name. The Prosecution Office believes Lee intended to evade the requirement to report changes in his assets.
The nominee trades reportedly numbered about 9,000 from 2020 through last year, and the total amount used for stock investments was about 1.2 billion won.
He is also accused of holding shares worth more than 30 million won in a nominee account without selling them or placing them in a blind trust by the statutory deadline. In 2021, when he was Secretary-General of the National Assembly, he allegedly received a total of 29 million won from four acquaintances as condolence money for his mother’s funeral and congratulatory money for his daughter’s wedding.
Lee’s lawyer acknowledged that Lee had used his aide’s cellphone in connection with the alleged violations of the Act on Real Name Financial Transactions and Guarantee of Secrecy and the Electronic Financial Transactions Act, but argued that he had started trading stocks “not to circumvent the law or for criminal purposes, but as a pastime to relieve boredom after losing the party primary.”
On the alleged violation of the Public Service Ethics Act, the defense said that the shares Lee had traded were in companies unrelated to his official duties.
On the alleged violation of the Improper Solicitation and Graft Act, the defense said it would contest the nature of some of the payments. Lee’s lawyer said, “In the case of Park, who gave the largest amount, 20 million won, the payment also included fees for legal advice,” adding, “We acknowledge the rest and will leave it to the court to decide.”
Cha’s defense also denied the related charges, arguing that Cha had not provided the cellphone and other items knowing they would be used in a crime.
Cha is also accused of instructing senior secretary Lee to shred documents from the lawmaker’s office and remove a laptop after allegations surfaced last August that Lee had used nonpublic information. Cha’s defense deferred submitting its position on the allegations of concealing evidence and instigating the acts, saying further legal review was needed. Lee’s defense also said it would submit a written opinion later.
The four acquaintances of Lee—Park, Ko, Moon, and Lim—admitted the charges in the indictment. They stressed, however, that they had given the condolence or congratulatory money because of their longstanding friendships and that the payments were not made in exchange for favors.
Park’s lawyer requested leniency, saying Park had given the money in consideration of the fact that he had been unable to pay his respects at the funeral of his friend Lee’s mother and that Lee’s daughter’s wedding was also coming up. The other acquaintances also appealed to the court to take into account that the payments had been made despite their limited legal knowledge.
The Prosecution Office sought fines of 20 million won for Park, 5 million won for Ko, and 2 million won each for Moon and Lim.
Lee took the opportunity to speak directly and said, “I am sorry to stand before this court as an elected public official,” adding, “Since this case arose from my wrongdoing, I will accept any outcome.”
He argued that the investigation had expanded after the case was classified as political, noting that at least 89 people had been questioned, search and seizure operations had been carried out 14 times, and the investigation records exceeded 10,000 pages. He then asked the court to show leniency to the other defendants, saying, “These people are not really at fault. The responsibility is entirely mine.”
Meanwhile, the allegation that Lee had traded AI-related stocks using nonpublic information he obtained while serving as head of the Economy Subcommittee 2 of the National Planning Committee was not included in this indictment. Police decided not to refer the allegation to prosecutors, saying it was difficult to substantiate, and maintained the same conclusion after reviewing the records again in response to a request for reinvestigation.
The next hearing will be held on the morning of the 23rd of next month.
[email protected] Park Sung-hyun Reporter