Korean First Lady Kim Keon-hee is facing allegations of manipulating the stock prices of Deutsch Motors Inc., a Korean BMW car dealer. On Dec. 28, 2023, the South Korean National Assembly approved a proposal for a probe into the accusations against the First Lady. Though the proposal received unanimous support from the South Korean National Assembly, President Yoon Suk Yeol ultimately vetoed the investigation.
“Stock manipulation is something that happens a lot in government because they have the power to make legislation that can benefit or hurt a company,” Steve Nave, Asian Studies teacher, said. “So, this could be a very serious infraction because insider trading and manipulation of stocks can hurt the economy and the government should not interfere in individual companies for personal gain.”
The alleged stock manipulation occurred 12 years ago—before the President and First Lady got married. The alleged stock manipulation was examined for two years under the Moon Jae-in administration, but no evidence of wrongdoing was successfully uncovered during that time. For these reasons, some prosecutors argue against pressing charges against the First Lady.
The Korean Democratic Party, the main opposition to the President, has brought up the alleged stock manipulation numerous times since the allegations first resurfaced during the National Assembly meetings and after court dates.
“Even though [the alleged stock manipulation] was around a decade ago, I still think that it was an act that was, in a way, still wrong,” Charlotte Kim (9), MUN member, said. “So, I think that it is completely justified to have an investigation even over a decade later when it is less relevant.”
The President and the People Power Party justified the veto by arguing that the investigation aimed to manipulate South Korean public opinion of President Yoon Suk-yeol and the First Lady shortly before the National Assembly Election in three months.
“I think the president vetoing the investigation was biased and not a fair approach considering the allegations were regarding his wife,” Jenny Park (10), a student interested in politics, said. “As stock manipulation is a serious problem, I am sure that he would have taken action to investigate other similar cases if the person committing the stock manipulation was not his wife.”
The President’s veto of the investigation caused significant backlash from the Korean public. According to a poll from Gallup Korea, 70 percent of survey respondents stated that President Yoon Suk-yeol should not have vetoed the bill on the First Lady. News sources such as Hankyoreh argued that the President seemed to be prioritizing the comfort and reputation of his wife over running South Korea and managing state affairs.
Kim Kon-hee has been absent from the public eye since mid-December 2023, which news sources such as Asia News Network speculate is due to the controversy surrounding her and the President.
The Democratic Party of Korea is currently attempting to delay the scheduling of the revote on the investigation as the National Assembly Election in April 2024 approaches.
