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Kang Yu-jung, presidential spokesperson, answers questions after briefing reporters on President Lee Jae-myung’s directives at the presidential office in Yongsan, Seoul, on August 6. / Source: Yonhap News

President Lee Jae-myung on August 6 ordered a swift and thorough investigation into allegations of illicit stock trading involving lawmaker Lee Chun-seok, while also instructing officials to explore the possibility of canceling POSCO E&C’s construction license following a series of fatal industrial accidents.

Speaking through presidential spokesperson Kang Yu-jung during a briefing at the Yongsan presidential office, Lee said, “Investigate the facts swiftly and handle the matter impartially and strictly.” He also demanded a comprehensive review of all legally viable punitive measures against POSCO E&C, including disqualification from public bids and license revocation.

The unusually stern remarks came as President Lee broke his vacation to issue emergency instructions — a sign of his determination not to lose momentum on his administration's reform agenda, particularly in stock market modernization and industrial safety.

Spokesperson Kang stated, “President Lee views the allegations involving proxy stock trading and potential use of insider information very seriously.” Lee’s directives reportedly came at around 10:45 a.m., just over 13 hours after lawmaker Lee Chun-seok announced his departure from the ruling party and the Democratic Party formally expelled him.

Lee’s focus on a “rigorous investigation” underscores his intent to develop the stock market into a credible alternative to real estate investment. During a visit to the Korea Exchange on June 11 — his first official external activity after taking office — Lee warned, “We’ll show that anyone who tries to manipulate Korea’s stock market will lose everything,” and called for a “one-strike-out” rule for unfair trading.

The timing of the scandal adds urgency, as public backlash continues over the government’s recent announcement to lower the threshold for major shareholders subject to capital gains tax from 5 billion won to 1 billion won.

Meanwhile, a second round of major commercial law reforms, dubbed the “tougher Commercial Act,” is pending in the National Assembly — making the ruling party’s credibility on economic reform especially vulnerable.

Regarding industrial safety, Lee also directed a thorough investigation into the fatal accidents at POSCO E&C construction sites and demanded the government report back on additional punitive options, including implementing punitive damages to prevent recurring tragedies.

This marks the second time Lee has publicly singled out POSCO E&C. On July 29, during a Cabinet meeting, he condemned the company’s repeated fatal accidents, stating, “When people die in the same way, it’s tantamount to condoning death — to put it harshly, it could be called murder by willful negligence.”

In a separate move, Lee designated 36 areas — including Asan in South Chungcheong Province and Buk-gu in Gwangju — as special disaster zones following last month’s torrential rains. He instructed officials to “promptly establish recovery plans, disburse budgets, and ensure displaced residents can return to their daily lives without delay.”