First Lady Kim Keon-hee Found Guilty in Deutsch Motors Appeal, Contrasting with Past Prosecution's Dismissal

The appellate court's guilty verdict against First Lady Kim Keon-hee for charges related to Deutsch Motors stock manipulation raises questions about the conflicting decision compared to the prosecution's past dismissal of the case. The facts presented by the appellate court as grounds for guilt were reportedly the same ones secured during the prosecution's prior investigation.

Key evidence cited included a voice recording containing a '40% profit agreement' and statements from related parties, obtained during the Seoul High Prosecutors' Office's reinvestigation. However, the prosecution team that decided not to indict Ms. Kim in 2024, despite being aware of the same information, gave it little weight, stating it was 'a conversation that took place outside of Ms. Kim's presence.'

The divergence in conclusions stemmed from the prosecution presenting call records between 'main manipulators' Mr. Lee and Mr. Kim as grounds for dismissal, asserting 'Kim Keon-hee knew nothing,' and accepting related claims. In contrast, the appellate court ruled that these conversations were made to evade responsibility after suspicions arose. Furthermore, the appellate court viewed that Ms. Kim was aware, at least implicitly, of her involvement in the market manipulation.

Unlike the prosecution's determination that Ms. Kim entrusted account management to Deutsch Motors CEO Kwon Oh-soo with expectations of profit, the appellate court concluded that Ms. Kim entrusted 2 billion won precisely because she was aware of the market manipulation.

On October 22, 2010, First Lady Kim Keon-hee spoke with Mr. Park of Mirae Asset Securities, saying, 'Wouldn't it be better to talk on a mobile phone from now on?' and 'Isn't everything being recorded?' In a call on January 13, 2011, she commented, 'They take as much as 12% for block deals,' and 'There, I, I agreed to give 40%.'