Prosecutors decide not to indict first lady over suspected stock manipulation

Prosecutors have decided not to indict first lady Kim Keon Hee after looking into her alleged involvement in a stock manipulation scheme involving Deutsch Motors Inc., a BMW dealer, officials said Thursday.

The Seoul Central District Prosecutors Office announced the decision four years after the investigation began into allegations that Kim’s stock trading account was used in a massive stock price manipulation scheme involving Deutsch Motors between 2009-2012.

The conclusion is expected to accelerate the opposition’s push for an independent counsel investigation into allegations involving the first lady, including her acceptance of a luxury bag from a Korean American pastor in 2022.

The prosecution decided not to charge in the handbag case earlier this month.

The stock manipulation allegations surfaced in 2020, when President Yoon Suk Yeol was serving as prosecutor general. Several lawmakers subsequently filed a complaint against Kim and her mother over the alleged stock market manipulation.

Thursday’s
conclusion was reached after a critical review by its internal “red team,” which was tasked with challenging the investigation’s findings. The case was not referred to an independent investigative review committee, where politically sensitive cases are often considered.

Last month, an appellate court found former Deutsch Motors Chairman Kwon Oh-soo and several others guilty in the manipulation scheme case, including a man surnamed Sohn, who allegedly financed the scheme, as the first lady allegedly has.

The ruling had prompted calls from opposition parties that the first lady should also be charged with abetting the manipulation, as Sohn has been.

Source: Yonhap News Agency