Kim Keon Hee, who was indicted on charges including manipulating Deutsch Motors stock and receiving valuables tied to the Unification Church, was sentenced on appeal to four years in prison. The term more than doubled from the first trial’s 20 months after the court reversed part of the stock-manipulation finding and expanded the scope of guilt on brokerage bribery charges.
The Seoul High Court’s Criminal Division 15-2 (Judges Shin Jong-oh, Seong Eon-ju and Won Ik-seon) on April 28 sentenced Kim, who was detained and indicted, to four years in prison and a 50 million won fine for violations of the Capital Markets Act and the Political Funds Act, and for brokerage bribery under the Act on the Aggravated Punishment of Specific Crimes. The court also ordered the forfeiture of one Graff necklace and about 20.94 million won in additional collection.
"She recognized her account could be used to manipulate prices"
The appeals court, unlike the trial court, found part of the stock-manipulation charge proved. It cited that in October and November 2010 Kim provided Black Pearl Invest with an account holding 2 billion won and left trading to the firm, and that during that period 180,000 shares were sold at specific times and prices. Calling it a prearranged trade, the court said she "recognized and accepted that her account could be used to manipulate prices," and held her liable as a joint offender.
The court also strengthened its ruling on the Unification Church-related brokerage bribery charge. While the trial court found guilt only in part, the appeals court found implied solicitation across the broader set of items, including a Chanel bag, and convicted her on all counts. It said there was a quid pro quo between the church’s requests for government cooperation and the provision of valuables, calling it a crime that "used the status of the president’s spouse."
The court, however, upheld an acquittal on allegations involving free polling services linked to Myung Tae-kyun. It said the polls were provided to multiple people, not only Kim and her husband, making it difficult to treat them as a benefit attributable to a specific individual. It also found insufficient evidence to conclude that a nomination was promised in return for the polling.
The court also strengthened its ruling on the Unification Church-related brokerage bribery charge. While the trial court found guilt only in part, the appeals court found implied solicitation across the broader set of items, including a Chanel bag, and convicted her on all counts. It said there was a quid pro quo between the church’s requests for government cooperation and the provision of valuables, calling it a crime that "used the status of the president’s spouse."
The court, however, upheld an acquittal on allegations involving free polling services linked to Myung Tae-kyun. It said the polls were provided to multiple people, not only Kim and her husband, making it difficult to treat them as a benefit attributable to a specific individual. It also found insufficient evidence to conclude that a nomination was promised in return for the polling.
Court cites harm to "market fairness" and investor trust
Explaining the heavier sentence, the court cited the seriousness of the crimes and Kim’s attitude. It said she provided large sums and an account and took part in price manipulation while refusing to acknowledge wrongdoing, adding that she "undermined the fairness of the stock market and investor trust." On brokerage bribery, it said her conduct "betrayed the public’s expectations."
The court said mitigating factors included that she did not lead the price manipulation, her involvement was not lengthy, and she did not first demand the valuables.
The ruling also tracked a shift in the special counsel’s approach on appeal. Prosecutors argued Kim was not a mere investor but a joint participant in the scheme, and emphasized implied quid pro quo rather than an explicit request in the brokerage bribery case. The court accepted those arguments, expanding the convictions and increasing the sentence.
Kim’s side said immediately after sentencing that it would appeal to the Supreme Court. The case will now move to a final review, with key issues including whether she conspired in the stock manipulation and how broadly quid pro quo can be recognized in the brokerage bribery charge.
* This article has been translated by AI.
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