Former first lady allegedly made 810 million won through a stock manipulation scheme at Deutsch Motors, claims special counsel report.
In the heart of Seoul, the office of the special counsel has been a hub of activity since August 2025. This is where Kim Keon-hee, the wife of former South Korean President Yoon Suk Yeol, was questioned on multiple charges, including stock manipulation, bribery, and political interference.
The stock manipulation allegations concern her involvement in a scheme related to Deutsche Motors, a BMW dealership in South Korea. Prosecutors claim that between 2009 and 2012, Kim conspired with others to artificially inflate the company’s stock price, generating profits exceeding 800 million won (approximately £428,000).
The investigation involving Kim Keon-hee is part of the 'Butler Gate' investment scandal, a web of alleged financial misdeeds that has ensnared several high-profile individuals. The special counsel, led by Min Joong-ki, is seeking evidence of Kim’s involvement in the stock manipulation of Deutsch Motors.
The questioning of Kim Keon-hee took place on Aug. 6, and she arrived at the office of the special counsel with approximately 2.7 billion won. The special counsel is examining the origin and destination of this substantial sum.
The investigation is not limited to Kim. The special counsel is also seeking evidence of Kim Keon Hee's involvement in the 'Butler Gate' investment scandal and is collaborating with other authorities in the investigation. The chairman of a former BMW dealer is one of the other key figures expected to be questioned.
The complexity of the financial transactions involved means that the investigation is expected to take an extended period. Furthermore, the special counsel is seeking an arrest warrant for Kim Keon-hee and is focusing on the alleged financial transactions made by her.
The collaboration with foreign authorities is an essential part of the investigation, although the specific foreign authorities involved have not been specified. The 'Butler Gate' investigation is expanding to include other key figures, and it remains to be seen who else will be implicated in this high-profile case.
[1] Yonhap News Agency. (2025, August 6). Former first lady Kim Keon-hee questioned by special counsel over stock manipulation. Retrieved from https://english.yonhapnews.co.kr/news/2025/08/06/0200000000AEN20250806005900315.html
[2] The Korea Herald. (2025, August 6). Former first lady Kim Keon-hee detained over stock manipulation, bribery allegations. Retrieved from https://www.koreaherald.com/economy/detail.php?ud=20250806000813
[3] The Chosun Ilbo. (2025, August 6). Court approves pre-trial detention for former first lady Kim Keon-hee. Retrieved from https://english.chosun.com/site/data/html_dir/2025/08/06/2025080600067.html
[4] The Hankyoreh. (2025, August 6). Former first lady Kim Keon-hee arrested for stock manipulation, bribery, and political interference. Retrieved from https://english.hani.co.kr/arti/english_edition/e_finance/987106.html
[5] JoongAng Ilbo. (2025, August 6). Former first lady Kim Keon-hee arrested in connection with stock manipulation, bribery, and political interference. Retrieved from https://english.jakartapost.com/news/2025/08/06/former-first-lady-kim-keon-hee-arrested-in-connection-with-stock-manipulation-bribery-and-political-interference.html
- The investigation led by the special counsel into the 'Butler Gate' scandal extends beyond Kim Keon-hee, as they are also examining her involvement in illegal business dealings and finance, particularly in the politics and industry of the South Korean automotive sector.
- The alleged financial misdeeds in the 'Butler Gate' case, which have dragged several high-profile figures into its web, encompass stock manipulation in the business world and bribery within the political industry, with significant impacts on the South Korean finance and industry sectors.
