‘Deutsche Motors Stock Manipulation’ Appeal Trial for Kim Keon Hee: Ruling Expected as Early as the 28th of Next Month

The Financial News: The appeal trial of First Lady Kim Keon Hee, who was sentenced to one year and eight months in prison at first instance over allegations including receiving money and valuables from the Family Federation for World Peace and Unification (Unification Church), is expected to conclude as early as the 28th of next month.
Seoul High Court Criminal Division 15-2 (Judge Shin Jong-oh of the Seoul High Court, Judge Sung Eon-joo of the Seoul High Court, and Judge Won Ik-seon of the Seoul High Court) held the first preparatory hearing for the appeal on the 11th in the case where the first lady has been indicted on charges including violations of the Capital Markets Act and bribery by brokerage. A preparatory hearing is a procedure held before full-scale trial to coordinate the parties’ positions and organize the issues, and the defendant is not required to appear. Kim did not attend the hearing, and only her attorneys were present.
The court stated that it plans to hold two trial hearings on the 25th of this month and the 8th of next month, and then deliver the verdict on the 28th of next month. However, it left open the possibility of scheduling additional dates if further examination is deemed necessary.
This schedule is seen as an expedited process designed to meet the deadline under the Special Prosecutor Act, which requires a ruling within three months of the judgment at the previous instance. The first-instance verdict in Kim’s case was handed down on January 28; if the ruling is issued as planned, the appeal judgment would come exactly three months later.
At the first trial hearing on the 25th, both sides are expected to present their grounds for appeal, and the court will consider whether to allow the Kim Keon Hee Special Prosecutor Team, led by Special Counsel Min Joong-ki, to amend the indictment. After completing the examination of documentary evidence, the court plans to call as a witness a team leader surnamed Park from the Korea Exchange, who drafted a report on suspicious trading patterns in the Deutsche Motors stock manipulation case.
On the 8th of next month, the court will examine any additional documentary evidence, if submitted, and then proceed with the questioning of the first lady as the defendant. However, Kim’s side stated that she "plans to exercise her right to remain silent," so the defendant examination is expected to conclude quickly. After that, each side will present its final arguments for 30 minutes, followed by Kim’s final statement, and the appeal trial will be closed.
Key issues on appeal include: whether Kim can be found guilty as a co-principal or as an accessory in the Deutsche Motors stock manipulation case and whether the statute of limitations has expired; whether the acceptance of a free public opinion poll constitutes a violation of the Political Funds Act; and whether she recognized any solicitation and actually received money or valuables in connection with the Family Federation for World Peace and Unification.
The special prosecutor has submitted additional evidence regarding the allegation that she received a Chanel bag on April 7, 2022, for which she was acquitted at first instance, including the written judgment convicting the alleged provider, Geonjin Beopsa (real name Jeon Seong-bae).
The court asked the special prosecutor to specify whether the starting date of Kim’s alleged stock manipulation should be set as October 21, 22, or 28, 2010, and to clearly state from which point the statute of limitations should be calculated. It also requested a detailed explanation of which specific provisions of the Political Funds Act were allegedly violated in relation to the free public opinion poll.
In the first-instance ruling, the court found part of the bribery-by-brokerage charge under the Act on the Aggravated Punishment of Specific Economic Crimes to be proven and sentenced Kim to one year and eight months in prison. It also ordered the forfeiture of a seized Graff diamond necklace and the collection of 12,815,000 won. However, it acquitted her of the Deutsche Motors stock manipulation allegations and of the allegation that she received a free public opinion poll from Myung Tae-gyun.
scottchoi15@fnnews.com Reporter Choi Eun-sol Reporter