Kim Keon-hee Special Prosecutor Team Arrests, Escorts Suspect in 'Deutsche Motors Stock Manipulation'
A key accomplice, identified as Mr. Lee, in the Deutsche Motors stock manipulation scandal was arrested at the Chungju rest stop on the 20th and taken into custody by the Kim Keon-hee special prosecutor's team at their office in the KT Building in Gwanghwamun, Seoul. The special prosecutor's team plans to focus its investigation on the circumstances and specific role of the arrested Mr. Lee in connection with the Deutsche Motors stock manipulation allegations. Mr. Lee, in his 50s, is believed to have been deeply involved in the first phase of the Deutsche Motors stock manipulation, which took place from late 2009 to mid-2010. The special prosecutor's team intends to determine Mr. Lee's role in the stock manipulation and his relationship with other involved parties.
In particular, Mr. Lee is known to have managed a securities account for Kim Keon-hee, and the special prosecutor's team is expected to focus its investigation on confirming Mr. Lee's connection to stock manipulation through Ms. Kim's account. The special prosecutor's team believes that it can secure important clues to confirm Ms. Kim's involvement in the stock manipulation through Mr. Lee's testimony. They plan to investigate how Mr. Lee managed Ms. Kim's account and what instructions he received. Mr. Lee has been investigated several times in previous prosecutorial investigations. At the time, Mr. Lee reportedly denied some of the charges against him or exercised his right to remain silent.
The Deutsche Motors stock manipulation allegations involve Kwon Oh-soo, former chairman of Deutsche Motors, who is accused of artificially inflating the stock price from 2009 to 2012. The allegations that Ms. Kim Keon-hee's account was used in this process have caused great controversy in political and legal circles. The previous government's prosecution indicted former Chairman Kwon Oh-soo on charges of violating the Capital Markets Act, but only conducted a written investigation of Ms. Kim and did not conduct any further investigation. Accordingly, the opposition party has continuously demanded the introduction of a special prosecutor for Ms. Kim, and the special prosecutor's law was passed by the National Assembly with bipartisan agreement, leading to the formation of this special prosecutor's team.
The special prosecutor's team is expected to decide whether to directly investigate Ms. Kim Keon-hee after completing its investigation of Mr. Lee. The special prosecutor's team will comprehensively review Mr. Lee's testimony and the evidence secured to determine the need for a summons for Ms. Kim. If a direct investigation of Ms. Kim takes place, it is expected to be the first special prosecutor's investigation of a current president's spouse in history. For this reason, the special prosecutor's team is expected to devote considerable attention to ensuring political neutrality and fairness in the investigation process of Ms. Kim.
The arrest and escort of Mr. Lee is being interpreted as a signal of the Kim Keon-hee special prosecutor's team's full-fledged investigation. The special prosecutor's team has stated that it plans to thoroughly investigate all possibilities related to the Deutsche Motors stock manipulation allegations. The special prosecutor's team emphasized that it will take all necessary measures, such as summoning related parties and conducting searches and seizures, to uncover the truth of the stock manipulation allegations and strictly punish those involved in illegal activities in accordance with the law.
