Kim Tae Hoon, chief prosecutor of the Daejeon High Prosecutors Office who led the investigation into the Deutsche Motors stock manipulation case under the Moon Jae-in government, criticized a trial court ruling that acquitted first lady Kim Keon Hee of violating capital markets law, calling it an “unfair decision.”
Kim posted his statement Tuesday on the prosecution’s internal network, e-Pros, under the title, “As a member of the first Deutsche Motors investigation team, I share my view on this ruling.”
He said the court acknowledged Kim Keon Hee’s awareness of the stock manipulation but still found her not guilty as a joint principal offender. He argued that conclusion is hard to accept in light of earlier rulings that found former Deutsche Motors chairman Kwon Oh Soo and former Black Pearl Invest CEO Lee Jong Ho guilty, as well as legal principles on joint offenders and continuing offenses.
Kim said earlier rulings found that Kim Keon Hee took part in multiple matched-order trades, citing a sell order for 100,000 shares on Oct. 28, 2010, and a large sell order on Nov. 1, 2010, known as the “7-second trade.” He also said earlier rulings recognized that 2 billion won Kim provided to Black Pearl was used as key funding for the manipulation scheme.
“Even though it was confirmed that matched orders and large-scale buying using Kim Keon Hee’s funds contributed to the price increase, not recognizing her as a joint principal offender runs counter to precedent that joint liability can be established through functional control based on a division of roles,” he wrote.
He also challenged the court’s statute-of-limitations analysis. Citing precedent, he said that even if an accomplice participated in only part of a continuing offense, the limitations period runs from the end of the overall crime, not from each individual act. He argued the court’s decision to separate acts from October 2010 to January 2011 and find the limitations period had expired conflicts with established legal principles.
“As a member of the first investigation team that investigated the Deutsche Motors stock manipulation accomplices and indicted them in custody, I find it difficult to accept this acquittal,” he wrote, adding that he hopes it will be corrected on appeal.
On Tuesday, the Seoul Central District Court’s Criminal Division 27, led by Presiding Judge Woo In Sung, sentenced Kim Keon Hee to 1 year and 8 months in prison on a separate charge of receiving improper solicitations. But it acquitted her of violating the Capital Markets Act, saying it was difficult to conclude she carried out the crime as a joint principal offender with the price-manipulation group.
* This article has been translated by AI.
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