Court: First Lady’s brokerage accounts used for stock price manipulation

The appellate court in charge of the Deutsche Motors stock manipulation case allegedly involving South Korean First Lady Kim Keon Hee stated in its written judgment that three brokerage accounts of Kim were used for stock price manipulation. As the appellate court’s ruling more clearly shows how Kim’s accounts were used to manipulate the stock price compared to the first trial ruling, it may affect the prosecution’s future handling of the case.

In the 345-page appellate ruling obtained by The Dong-A Ilbo on Friday, the First Lady’s name appears 87 times (including once as “Kim Myung Shin,” her previous name) and her mother, Choi Eun-soon, 33 times. Her name was mentioned more than double compared to in the first trial verdict released in February 2023, in which she was mentioned 37 times. Choi was mentioned 27 times in the first trial ruling.

The significant increase in the number of references to First Lady Kim in the appeal judgment was due to additional evidence submitted by former Deutsche Motors Chairman Kwon Oh-soo. During the appeal, Kwon submitted a recording of a phone call between the first lady and a broker of Daishin Securities on October 28, 2010. Kwon argued that Kim’s accounts at Daishin Securities were not used to manipulate the stock price, saying that the accounts were either entrusted to the broker or the broker independently determined their trading. After the first trial in February last year, the presidential office stated that First Lady Kim was deceived by the stock manipulator and traded stock by entrusting her accounts but later retrieved her accounts.

However, the appellate court ruled that the accounts were used to manipulate the stock price based on former Chairman Kwon’s instructions, and the broker merely submitted orders as instructed. The court cited the first lady’s comments on the phone with another broker, such as, “You got a call from him, right?”

The appellate court also found that the First Lady’s three brokerage accounts were used after October 21, 2010, when the statute of limitations in the Deutsche Motors case was still in effect.


김자현 ·유원모 기자 zion37@donga.com