Prosecutors Launch Reinvestigation into Kim Geon-hee's Stock Manipulation Case
The Seoul High Prosecutors' Office has recently dispatched two prosecutors to reinvestigate the allegations surrounding Kim Geon-hee, the wife of former President Yoon Suk-yeol, in connection with the Deutsche Motors stock manipulation case. Legal experts suggest that this staffing move indicates a potential acceleration in the investigation process.
On May 12, it was reported that the Seoul High Prosecutors' Office decided to reopen the investigation into Kim's alleged violations of the Capital Markets Act, following an appeal regarding her case that was filed on April 25. Three prosecutors, including Choi Haeng-gwan (33rd Judicial Research and Training Institute), have been assigned to this reinvestigation.
Kim Geon-hee is accused of being involved as a 'money provider' in a scheme orchestrated by former Deutsche Motors chairman Kwon Oh-soo, who allegedly manipulated stock prices from 2009 to 2012 using various accomplices. The allegations were brought to light in April 2020 when former Democratic Party lawmaker Choi Kang-wook and others reported her as a co-conspirator in the case while Yoon was serving as the Prosecutor General.
Initially, the Seoul Central District Prosecutors' Office concluded in October 2021, after 4 years and 6 months of investigation, that there was insufficient evidence to charge Kim with conspiracy or aiding in the stock manipulation. They acknowledged that her accounts were involved but determined that there was no clear evidence of her participation or knowledge of the manipulation.
However, Choi, the complainant, contested the decision, leading to the Seoul High Prosecutors' Office reviewing the case since November of last year. The reinvestigation is now being handled directly by the Criminal Division of the Seoul High Prosecutors' Office, which has deemed it necessary to conduct further inquiries into related parties, especially after a Supreme Court ruling regarding Kwon and other accomplices was finalized last month.
During this reinvestigation, prosecutors are focusing on determining the extent of Kim's awareness and involvement in the stock manipulation activities. There are also discussions about potentially summoning Kim for questioning.
