(Bloomberg) -- South Korean prosecutors looking into a luxury bag given to first lady Kim Keon Hee under questionable circumstances cleared the wife of President Yoon Suk Yeol of any criminal charge, Yonhap News said. She faced 12 hours of questioning in July, bringing new attention to the simmering incident that has dented support for the government. Yoon’s opponents have said the designer Dior bag was a bribe. Yoon and the first lady have denied any wrongdoing — saying the move was part of a “political maneuver” to discredit them. The handbag encounter in late 2022 was captured on video and touched off a political firestorm when it came to light early this year.
1. What was the uproar about?
The video was reportedly shot by a pastor, Choi Jae-young, who has sought a softening of the president’s tough stance toward North Korea. It shows the purchase of a Dior handbag for 3 million won ($2,250). Using a camera concealed on a watch, Choi then walks into what appears to be the office of a planning firm run by Kim and presents her with a shopping bag that purportedly contains the Dior clutch. He passes it to her, with Kim being recorded as saying: “Why do you keep bringing these?,” then telling him not to do so and adding “never buy something expensive like this.” The video was shown about a year later on a left-leaning political site that often presents views opposed to Yoon’s policies. Following her questioning by prosecutors, Kim’s lawyer told Yonhap she had responded in a “sincere manner and told the truth.” Prosecutors eventually found there was no evidence favors were offered in return for the bag, Yonhap said.
2. What has been the reaction to the case?
The incident revived memories of past “pay-to-play” scandals where people used their access to power for personal gain. It has also stirred a debate over whether Kim brought the unwelcome publicity upon herself, or is being targeted for raising the profile of the South Korean first lady. Opposition candidates brought up the issue on the campaign trail for elections in April, calling for a special prosecutor to look for any possible wrongdoing. They also signaled they will try to keep the issue alive by seeking a special counsel probe.
3. What’s at stake?
The investigation had the potential to lead to charges against the first lady and undermine support for Yoon during the final three years of his term in office. It also provided political ammunition for the opposition to attack the president.
4. What else is Kim known for?
Kim ran an art exhibition company when she met Yoon and the two married in 2012, according to local media. She was a vocal supporter of ending the country’s consumption of dog meat. In a rare unanimous vote in January, parliament passed the measure to end the breeding, butchering and sale of dog meat. Like many other first ladies, Kim has tried to promote Korean culture abroad. In trips overseas, she has also tried to show support for poverty-relief efforts. Yoon said in an interview that the Dior bag controversy stemmed from his wife not being able to cut ties with the pastor, adding: “It will be important to draw a clearer line to ensure that such incidents do not happen again.”
5. What are the other controversies?
When Yoon was running for president, Kim apologized in 2021 for inflating her academic credentials when applying for a professorship. The education ministry investigated and found she had falsely claimed to have earned a master’s degree in business administration at the prestigious Seoul National University, national broadcaster KBS reported. The main opposition Democratic Party has also accused Kim of stock manipulation in 2010 and 2011, something Kim and the presidential office have denied, saying the charges are politically motivated. Yoon later vetoed a bill passed by the opposition late last year calling for the appointment of a special counsel to investigate the first lady’s share dealings.
6. Has this kind of thing happened before?
The South Korean political landscape is littered with relatives of past presidents, lawmakers and ministers who were either jailed, investigated or accused of graft. Former President Roh Moo-hyun, who boasted his 2003-2008 administration was South Korea’s cleanest, killed himself after he left office. His wife was under investigation at the time for allegedly receiving money to pay family debts from a businessman who had been charged with tax evasion and insider trading. Lee Myung-bak, who became president after Roh, was convicted of corruption after leaving office. The case stemmed from a probe of his brother’s auto-parts company, which prosecutors alleged Lee used as a way to enrich himself.
--With assistance from Jenny Lee and Soo-Hyang Choi.
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