Allegations of abuse of authority involving the National Pension Service and ‘imperial golf’... Will President Lee and the first lady face a CIO investigation?

[Financial News] The Corruption Investigation Office for High-ranking Officials (CIO) has assigned a complaint case related to allegations that President Lee Jae Myung intervened in the management of National Pension Service funds and has launched a full-scale investigation. The CIO has not disclosed whether it received a complaint or the status of a preliminary inquiry into the so-called ‘imperial golf’ allegations surrounding First Lady Kim Hye-kyung, prompting interest in whether allegations involving the presidential couple will lead to actual investigations.
At a regular briefing at the Government Complex Gwacheon on the 27th, a CIO official said the case involving a complaint against the president over the decline in the value of National Pension Service stock holdings had been assigned to “Investigation Division 1, headed by Chief Prosecutor Na Chang-su.” Asked about specific progress in the investigation, the official said, “I can’t comment on the status of the investigation,” adding, “It is proceeding according to the investigation team’s plan.”
The civic group Korea Shareholder Movement Headquarters had earlier filed a complaint against President Lee, Health and Welfare Minister Jeong Eun-kyeong, National Pension Service Chair Kim Sung-joo and others on suspicion of abuse of authority and obstruction of the exercise of rights.
The group takes issue, among other things, with the fact that the fund management policy changed after President Lee made remarks related to the National Pension Service’s sale of domestic stocks. It alleges that the president’s remarks infringed on the independence of fund management and improperly influenced related decision-making.
The National Pension Service, however, previously explained that its adjustment of the target allocation to domestic stocks was made in consideration of potential structural changes in the market and the fund’s long-term returns and stability. It has not been established whether there were unlawful instructions or pressure linking the president’s remarks to the change in fund management policy.
The CIO also maintained a cautious stance on allegations surrounding Kim’s use of a golf course.
Earlier, Joo Jin-woo, a People Power Party lawmaker, alleged that Kim played golf on the 20th at Taereung Country Club, a military golf facility, with a well-known professional golfer and others. Joo raised questions about the name used to make the golf course reservation, the cost of using the facility and whether a separate clubhouse had been opened, among other things, and alleged that preferential treatment may have been involved.
The previous day, at a comprehensive audit of state affairs by the National Assembly’s Legislation and Judiciary Committee, CIO Chief Oh Dong-woon said that Kim fell within the CIO’s investigative jurisdiction by virtue of her status, while noting that it would have to determine whether an actual crime had been committed. He added that if a complaint were filed, it would be handled in accordance with law and principle.
At its briefing that day, however, the CIO did not clearly say whether it had received a related complaint. Asked whether it had opened a preliminary inquiry into the allegations, a CIO official replied, “There is nothing further to disclose beyond Chief Oh’s remarks at the parliamentary audit.”
Political sparring over the allegations concerning Kim’s golf outing is continuing. The Democratic Party of Korea (DPK) dismissed the allegations raised by Joo as false and announced plans to take legal action. Professional golfer Lydia Ko, whom Joo identified as one of the people accompanying Kim, also denied the allegations, saying she had other official engagements on that date.
[email protected] Yu Seon-jun, Choi Eun-sol Reporter