South Korean police have sent the case of independent lawmaker Lee Chun-seok, formerly of the Democratic Party, back to prosecutors concerning allegations of proxy trading in stocks. Prosecutors had previously requested a reinvestigation based on claims of using undisclosed information for trading, but the police maintained their original conclusion that there was insufficient evidence to support those allegations. This decision illustrates an apparent disagreement between the police and prosecutors about the evidence and handling of the case.

The Financial Crimes Investigation Unit of the Seoul Metropolitan Police announced the referral of Lee's case to the Southern District Prosecutor's Office, stating that while they acknowledge some wrongdoing regarding proxy trading, they dismiss allegations of misuse of undisclosed information, which falls under capital market laws. The investigations detail that Lee was involved in proxy trading amounting to 1.2 billion KRW over several years through an aide’s account while serving as a member of the National Assembly and secretary general, despite no concrete evidence of utilizing unpublished information related to investments in major companies such as Naver and LG CNS.

The Southern District Prosecutor's Office had requested a supplementary investigation into the proxy trading allegations, while also seeking a reevaluation of the dismissed charges concerning the use of undisclosed information, indicating a possible conflict over the transparency and integrity of the investigations. After extensive probing, the police reaffirmed their previous decisions which suggest that the prosecutors are limited in their ability to contest the non-indictment regarding the charges of using unpublished information since such matters can only be sent back for reexamination once, thereby effectively closing the case on that front.