Ruling bloc divided over prosecutor’s decision to drop stock-rigging charges against South Korea’s first lady

Seoul: South Korea’s conservative bloc was divided on Friday (Oct 18) by prosecutors’ recent decision not to indict First Lady Kim Keon Hee over her alleged involvement in a stock price manipulation scandal. involving a local BMW dealer.

The Seoul Central District Prosecutors’ Office on Thursday dismissed charges that the first lady violated the Capital Markets and Financial Investment Services Act.

The announcement came about four years after the investigation into allegations that Kim’s stock trading accounts were used in a massive stock price manipulation scheme involving Deutsch Motors more than a decade

Prosecutors said Kim did not know his accounts were being used in the scheme.

Rep. Choo Kyung-ho, leader of the ruling People’s Power Party, which is seen as a pro-Yoon faction within the conservative bloc, confirmed the prosecution’s decision, saying it was based on its efforts to carry out a fair investigation

“I think the prosecutors made efforts to announce a fair outcome of the investigation based on evidence and legal principles,” Choo told reporters at the National Assembly in western Seoul on Friday.

“The results will be judged by the people. For now I think the prosecutors did everything possible and made efforts to announce results that demand people’s understanding,” he added.

However, Shin Ji-ho, the head of the ruling People’s Power Party’s strategic planning department and a well-known aide to current ruling party chairman Han Dong-hoon, said in a radio interview on Friday that the process leading to the prosecution The decision is “doubtful”.

“Prosecutors have held two rounds of investigative review committee meetings (to deliberate) on the luxury bag case, but they did not hold those meetings (review meetings) for this case which is considered more serious, which is very doubtful,” Shin said in an MBC radio interview.

An independent review committee of the Supreme Prosecutor’s Office had held two rounds of meetings linked to the first lady’s acceptance of a Dior handbag worth 3 million won (US$2,248) from a Korean American pastor in 2022. However, similar stock manipulation reviews have yet to hold the scandal.

Shin’s comments are in line with Han’s comments to reporters Thursday that it would be “necessary” for the conservative bloc to see whether the prosecutor’s decision not to indict the first lady over the stock-rigging scandal “could convince the audience”.

On the other side of the political spectrum, the main opposition Democratic Party said on Friday it would take the necessary steps to remove Attorney General Shim Woo-jung over the prosecution’s decision not to indict.

“The party leadership discussed the issue of removing the attorney general and concluded to go ahead with the plan,” Jo Seoung-lae, a senior Democratic Party spokesman, told reporters after a meeting of the Supreme Council.

Jo added that the timetable for the plan and the impeachment will be announced after further discussions with the party leadership.

The latest split follows calls from People’s Power Party chairman Han Dong-hoon for the first lady to scale back her public activities and officially explain the multiple allegations against her.

Such actions by the first lady would help the conservative bloc regain public trust, Han stressed on Thursday.

The ruling party leader also said the presidential office needs to carry out a staff reshuffle to dispel claims that the first lady has connections with several officials in the presidential office and was therefore able to interfere in a way inadequate in state affairs.

The ruling party leader stepped up his calls, a day after the conservative bloc won two of the five seats in Wednesday’s regional by-elections in their respective strongholds: Busan’s Geumjeong district and Incheon’s Ganghwa county. despite the fact that President Yoon Suk Yeol’s approval rating had reached. a historic low.

According to observers, the victory has consolidated Han’s leadership within the ruling party despite his apparent rift with Yoon and the pro-Yoon faction within the conservative bloc. – The Korea Herald/ANN