Seoul: Prosecutors have decided not to indict first lady Kim Keon Hee after a four-year investigation into her alleged involvement in a stock manipulation scheme involving Deutsch Motors Inc., a BMW dealer, officials stated Thursday. The investigation, which began in response to allegations that Kim’s stock trading account was used in a stock price manipulation scheme from 2009-2012, concluded without charges, raising political stakes amid ongoing scrutiny of her activities.
According to Yonhap News Agency, the Seoul Central District Prosecutors Office announced that their decision came after a thorough review by an internal “red team” designed to challenge the investigation’s findings. This decision not to move forward with charges marks a significant moment in a case that has been closely watched due to its potential implications for the political landscape in South Korea.
The investigation into Kim Keon Hee initially gained momentum in 2020 when her husband, President Yoon Suk Yeol, was serving as the pr
osecutor general. The allegations intensified when several lawmakers filed a complaint against Kim and her mother, accusing them of engaging in stock market manipulation. Despite the serious nature of the accusations, the case was not referred to an independent investigative review committee, which typically handles politically sensitive cases.
The controversy surrounding the first lady extended beyond the stock manipulation allegations. Earlier this month, prosecutors also decided not to charge her in a separate case involving the acceptance of a luxury handbag from a Korean American pastor in 2022. This series of legal challenges has fueled the opposition’s demands for an independent counsel to investigate the allegations against Kim.
Adding to the complexity of the case, last month an appellate court found former Deutsch Motors Chairman Kwon Oh-soo and several others guilty in the related manipulation scheme. This ruling included a man surnamed Sohn, who was allegedly financed by the same scheme as Kim.
The conviction of these individuals had prompted further calls from opposition parties for the first lady to be charged with abetting the manipulation, similar to Sohn’s charges.
As the legal proceedings continue to unfold, the political ramifications of Thursday’s decision are expected to be significant, potentially influencing the approach of opposition parties and impacting the broader political dynamics in South Korea.