Prosecutors Secure Kim Geon-hee's Phone in Deutsche Motors Stock Manipulation Case

On May 21, it was reported that prosecutors investigating the stock manipulation allegations involving Kim Geon-hee, the wife of former President Yoon Suk-yeol, have obtained her mobile phone. According to sources, the Seoul High Prosecutors' Office's investigation team recently executed a separate search warrant for Kim's phone, which had been seized by the Seoul Southern District Prosecutors' Office's Joint Investigation Team for Virtual Asset Crimes on April 30.

The Seoul High Prosecutors' Office sought a new search warrant from the court to avoid any controversy regarding illegally obtained evidence. The initial search warrant presented by the Southern District Prosecutors' Office only included details related to allegations of soliciting legal favors, and did not cover the Deutsche Motors investigation. If the phone were to be transferred from the Southern District Prosecutors' Office without proper documentation regarding the Deutsche Motors case, it could be deemed illegally obtained evidence, potentially rendering it inadmissible in court.

Previously, a dedicated investigation team from the Seoul Central District Prosecutors' Office had also secured Kim's phone using a similar method while probing allegations of political broker Myung Tae-kyun's involvement in candidate nominations.

Kim Geon-hee is accused of being a financial backer, or 'jeonju' (전주), in a scheme orchestrated by former Deutsche Motors chairman Kwon Oh-soo, which allegedly involved organized stock manipulation from 2009 to 2012. In April 2020, while Yoon was serving as the Prosecutor General, former Democratic Party lawmaker Choi Kang-wook and others reported Kim as an accomplice in this case. After 4 years and 6 months, the Seoul Central District Prosecutors' Office decided not to prosecute, citing insufficient evidence, a decision that Choi and others have since appealed.

After six months, the Seoul High Prosecutors' Office accepted the appeal and decided to reopen the investigation, reportedly assigning two prosecutors to review the case files. The prosecution is focusing on determining the extent of Kim's awareness and involvement in the stock manipulation activities during the re-investigation.