DP submits revised special probe bill as prosecutor general examines first lady allegations
Published: 11 Nov. 2024, 16:38
Updated: 11 Nov. 2024, 17:04
- LIM JEONG-WON
- [email protected]
Audio report: written by reporters, read by AI
The liberal Democratic Party (DP) submitted a revised special prosecutor bill on Monday to investigate allegations against first lady Kim Keon Hee.
The revised bill would reduce the scope of the investigation and grant a third party the right to recommend a special prosecutor.
"We will submit a revised bill on the Special Prosecutor Act limited to the suspicions of stock price manipulation of Deutsch Motors, the Myung Tae-kyun case and suspicions of Kim's intervention in nominations and elections at the plenary session on Nov. 14," DP spokesperson Han Min-soo said at the National Assembly on Monday.
Earlier, the Seoul High Prosecutors’ Office began a full-scale review of whether the prosecution’s earlier decision to clear Kim of charges related to involvement in a Deutsch Motors stock manipulation case was appropriate.
Three investigation teams with the Seoul Central District Prosecutors’ Office concluded over four years that Kim was unaware of stock price manipulation committed by former Deutsch Motors Chairman Kwon Oh-soo and others.
On Oct. 31, former liberal lawmaker Choe Kang-wook submitted an appeal asking prosecutors to reverse their decision to clear the first lady. Upon review, the Seoul Central District Prosecutors’ Office refused to recognize the appeal's arguments.
On Friday, the Seoul Central District Prosecutors’ Office sent its opinion on Choe's appeal and its investigation records regarding Kim and the Deutsch Motors case to the Seoul High Prosecutors’ Office, according to legal sources.
The Seoul High Prosecutors’ Office plans to assign the case to the criminal division soon to examine whether a reinvestigation is necessary.
In 2020, the prosecutor general’s authority was stripped during district prosecutor investigations under the direction of then-Justice Minster Choo Mi-ae.
However, with the case being transferred to the Seoul High Prosecutors’ Office, current Prosecutor General Shim Woo-jung will directly helm the investigation.
Shim stated during a state audit on Oct. 21 that he would “exercise his authority to direct the investigation” if the appeal was filed and the case was transferred to the Seoul High Prosecutors’ Office.
The decision to clear Kim, led by Seoul Central Prosecutors' Office head Lee Chang-soo, met with criticism from liberals because Lee served as the spokesperson for President Yoon Suk Yeol when he was prosecutor general.
However, the Seoul High Prosecutors’ Office is expected to dispel the controversy — at least to an extent — with an investigation led by Shim.
While predicting how the Seoul High Prosecutors’ Office will conclude is impossible, many in the legal community believe it is unlikely to overturn the district prosecutors' decision.
The Deutsch Motors stock manipulation case began with a complaint filed by Choe in April 2020, when Rep. Lee Sung-yoon of the Democratic Party was head of the Seoul Central District Prosecutors’ Office. A total of four investigations were conducted over four years and six months.
Excluding the initial investigation that focused on collecting evidence, the three investigation teams commonly concluded they didn't have enough to charge first lady Kim with stock market manipulation.
The investigation teams said while it was true that accounts in Kim’s name were used for price manipulation, there was no evidence to prove that Kim and the initial investors who provided funds and accounts for Deutsch Motor were aware of the crime.
The investigation team that brought Kwon and others to trial wrote in a comprehensive opinion submitted to the first trial in 2022 that it "appeared that Kwon engaged in a double game by promising to make profits for his acquaintances through stock investments while using their accounts as collateral for price manipulation.”
“Although Kwon promised to manage the stocks of Kim and other account holders and make profits, they did not know that their stocks were provided as collateral, and therefore, Kim could not have protested directly,” the investigation team continued.
An investigation team under Chief Prosecutor Song Kyung-ho, who clashed with the Yongsan presidential office over summoning Kim, also tentatively concluded that Kim was unaware of the price manipulation.
The investigation team reportedly could not conclude Kim was aware of the manipulation based solely on the fact that her account was involved in the manipulation, saying that “Kim might have sold stocks at the request of the manipulators, but it is also possible she was recommended to sell due to favorable circumstances for the company.”
“Even if transactions were concluded between the related parties, it doesn't necessarily follow that they were sweetheart stock deals, and one has to prove that they intended to mislead investors into buying shares, but there's not even indirect evidence of this,” the investigation team said.
The investigation team also reportedly looked into whether they could apply the charge of aiding and abetting to Kim but decided that the statute of limitations had expired.
An investigation team investigating six securities accounts under Kim’s name concluded last month that there was no clear evidence that Kim even vaguely knew about Kwon’s price manipulation when she provided the accounts, and thus decided to clear Kim.
The Seoul High Prosecutors’ Office is expected to determine whether to order a reinvestigation after determining whether there were any shortcomings in the Seoul Central District Prosecutors' Office's investigations or whether there are additional matters to investigate.
BY LIM JEONG-WON [[email protected]]
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)