
South Korea's conservative ruling bloc is experiencing internal divisions following the recent decision by prosecutors not to indict first lady Kim Keon Hee in connection with an alleged stock price manipulation scandal involving a local BMW dealer.
The Seoul Central District Prosecutors Office announced on Thursday that it had dismissed charges against Kim, concluding that she did not violate the Financial Investment Services and Capital Markets Act. This decision came after a four-year investigation into claims that Kim's stock trading accounts were implicated in a significant stock price manipulation scheme involving Deutsch Motors over a decade ago. Prosecutors stated that Kim was unaware of her accounts' involvement in the scheme.
Ruling People Power Party Floor Leader Rep. Choo Kyung-ho, associated with the pro-Yoon faction within the conservative bloc, supported the prosecutors' decision, asserting that it reflected a fair investigation. Choo remarked, "I believe that the prosecutors made efforts to announce a fair result of the investigation based on evidence and legal principles," during a press briefing at the National Assembly in western Seoul.
Conversely, Shin Ji-ho, head of the ruling party's strategic planning department and a close aide to the current party chair, expressed skepticism regarding the prosecutors' process. In a radio interview, Shin noted the absence of review committee meetings for the stock manipulation case, despite two such meetings being held for a separate luxury bag case involving the first lady, which he deemed "very doubtful."
The independent review committee for the Supreme Prosecutors' Office had convened twice regarding the first lady's acceptance of a Dior handbag valued at 3 million won ($2,248) from a Korean American pastor in 2022, while similar reviews for the stock manipulation allegations have not yet occurred.
Shin's comments align with those of Han Dong-hoon, the ruling party chair, who suggested that the conservative bloc must assess whether the prosecutors' decision could gain public confidence. Han also urged the first lady to reduce her public engagements and address the various allegations against her to help restore trust in the conservative bloc.
In contrast, the main opposition Democratic Party announced plans to impeach Prosecutor General Shim Woo-jung in response to the non-indictment decision. Senior Democratic Party spokesperson Jo Seoung-lae stated that the party leadership had discussed the impeachment and would provide a timeline for the plan after further deliberations.
This division within the ruling party follows recent electoral victories in regional by-elections, where the conservative bloc secured two out of five seats in its strongholds, despite President Yoon Suk Yeol's approval ratings reaching an all-time low. Observers suggest that these victories have solidified Han's leadership within the ruling party, even amid apparent tensions with Yoon and the pro-Yoon faction.