In a recent turn of events, South Korea’s First Lady, Kim Geon-hee, has been under investigation over alleged stock manipulation. The Seoul Central District Prosecutors’ Office announced on the 17th that they have decided not to indict her. This decision comes as they concluded that Kim was unaware that her account was used to manipulate stock prices. This development is expected to fuel the opposition’s push for an independent investigation.
According to a report by the Korea Herald, the investigation into Kim Geon-hee commenced about four and a half years ago. Her stock trading account was reportedly used from 2009 to 2012 for large-scale manipulation of the stock prices of Deutsch Motors, the South Korean dealer for BMW.
The Seoul District Prosecutors’ Office, based on information from an internal “Red Team” inquiry, indicated that Kim handed over her account to a former executive of the company for profit generation but did not have knowledge of its use in stock trading. Notably, this case was not submitted to an independent investigation review committee, which typically handles politically sensitive matters.
Additionally, Kim’s mother, Choi Eun-soon, was also cleared of charges for the same reason.
The allegations of stock manipulation first came to light in 2020 when Yoon Suk-yeol was serving as Prosecutor General. Several lawmakers then leveled accusations against both Kim Geon-hee and her mother regarding stock trading.
The South Korean National Assembly had previously attempted to enact a bill appointing a special prosecutor for this case, but President Yoon Suk-yeol exercised his veto power, rejecting the proposal.
Recently, a court of appeals ruled that the chairman of Deutsch Motors, Kwon Woo-soo, and several others were guilty of involvement in the manipulation scheme. Notably, an individual surnamed Sohn was charged with similar offenses as Kim, accused of providing funds for stock manipulation, and has also been indicted.
This ruling has intensified calls from the opposition for Kim Geon-hee to face similar charges as Sohn.
