Prosecution probes South Korea’s First Lady over Dior bag scandal, stock manipulation

This marks the first time in history that the wife of a sitting president has been summoned for a prosecution investigation.

The Seoul Central District Prosecutors Office announced on July 21 that Kim was questioned for around 12 hours, from 1.30pm on July 20 to 1.20am on July 21, at an undisclosed government building behind closed doors “for security and safety reasons”.

Kim’s legal representative, lawyer Choi Ji-woo, stated on July 21 that Kim “diligently cooperated with the investigation and truthfully testified to all the facts”. He added that she had fully explained her position.

The scandal centres on accusations that Kim illegally received a Dior handbag worth about 3 million won ($2,900) and other expensive gifts from Korean-American pastor Choi Jae-young in September 2022, allegedly in exchange for favours.

Kim’s close aide surnamed Yoo, conceded during questioning in early July that the First Lady did receive the handbag but claimed she had ordered that it be returned to the pastor the same day.

However, Yoo said she forgot to return it because of other tasks, and the handbag has since remained unused and stored by the presidential office, emphasising that there was no intent to use the bag.

During the questioning, prosecutors mainly focused on how the bag was received, and any solicitations made by Pastor Choi.

South Korea’s local media reports suggested that the prosecutors mainly examined whether receiving the Dior handbag from Pastor Choi constituted a violation of the Improper Solicitation and Graft Act.

The luxury handbag investigation began in December 2023 when Baek Eun-jong, head of the media outlet Voice of Seoul, accused Kim of violating the Act.

In November 2023, Voice of Seoul, a liberal YouTube-based news channel, published a video showing Pastor Choi handing over a Dior handbag to Kim during their September 2022 meeting in Seoul.

The pastor secretly filmed the video with a camera disguised as a watch, and the bag was reportedly provided by Voice of Seoul.

Kim has also been accused of manipulating the stock prices of Deutsch Motors, a BMW dealer, from 2009 to 2012.

She allegedly conspired with Deutsch Motors chairman Kwon Oh-soo and trader Lee Jong-ho, former CEO of Black Pearl Invest and known as the “control tower” of the scheme.

Prosecutors focused on the circumstances and extent of her involvement in the Deutsch Motors stock transactions during the questioning, according to multiple local reports.

This included questions about her role as a main investor, her ties with the chief conspirators and her account usage.

The investigation into Deutsch Motors began in April 2020 after Choe Kang-wook, a former National Assembly lawmaker, filed a complaint against Kim for alleged violations of the Capital Market Act.

Kim is the third First Lady in South Korean history to face questioning.

Lee Soon-ja, wife of authoritarian leader Chun Doo-hwan, was questioned in 2004 regarding Chun’s slush fund case.

Kwon Yang-sook, wife of former president Roh Moo-hyun, was investigated in 2009 in connection with an alleged graft scandal involving her family. However, both Lee and Kwon were questioned as witnesses.

Lee Jaeeun

The Korea Herald

Asia News Network