Deutsche Motors Share Price Manipulation Appeal Verdict Expected Today

The appeal trial against the Deutsche Motors share price manipulators is set to conclude today, marking a significant turning point in the prosecution’s investigation into suspected stock price manipulation by First Lady Kim Kun-hee.

Last July, the prosecution investigated Ms. Kim Kun-hee as a suspect, the first direct investigation in four years and seven months since suspicions were raised that Deutsche Motors was involved in stock price manipulation.

Prosecutors went to the intelligence annex building and questioned Ms. Kim, leaving her cell phone there. However, controversy has arisen over delayed and preferential investigations.

Members of the stock-rigging ring, including former Deutsche Motors Chairman Kwon Oh-soo, have been handed over for trial one after another, with most having been convicted in the first trial or awaiting sentencing in the first trial.

The appeal verdict against former President Kwon and others will be announced today, with attention focused on Mr. Son of Jeonju, who is suspected of contributing 10 billion won to stock price manipulation.

The First Instance Court found Mr. Son not guilty of the charge of participating in stock price manipulation. However, during the appeal process, the prosecution added the charge of aiding and abetting against Mr Son and sentenced him to three years in prison.

At the very least, he was aware of the stock price manipulation and purchased shares to help commit the crime. If the appeals court upholds Mr. Son’s aiding and abetting charge, public opinion could turn against Ms. Kim, who is suspected of playing a similar role.

Another variable is how far the court will extend the period for suspicion of stock price manipulation. The court of first instance considered that the limitation period for the first period had expired and considered the transactions only in the second period.

The First Instance Court held that in both the first and second periods, the accounts entrusted to the stock price manipulation forces were accounts in the names of Ms. Kim and her mother, Choi Eun-soon. If the appeals court finds the first period to be the crime, Ms. Kim’s suspicions could further increase.

It will be interesting to note whether the appeals court ruling will include a finding on Ms. Kim’s collusion. The lower court had previously acknowledged that three accounts in Ms. Kim’s name had been used to manipulate stock prices, but had not ruled on Ms. Kim’s collusion.

I’m Sang-Moon Yoon from MBC News.

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