[2024 National Audit] Lee Bok-hyun "Did Not See Korea Exchange's Hearing Report on 'Deutsche Motors'"

National Assembly Political Affairs Committee Financial Supervisory Service Audit

Lee Bok-hyun, Governor of the Financial Supervisory Service, is responding to a lawmaker's question during the National Assembly's Political Affairs Committee's audit of the Financial Supervisory Service held on the 17th. Photo by Kim Hyun-min

On the 17th, Lee Bok-hyun, Governor of the Financial Supervisory Service, stated regarding the suspicion of stock price manipulation involving Deutsche Motors, "I have not seen the psychological analysis report prepared by the Korea Exchange."

Earlier, in September 2020, the prosecution requested the Korea Exchange to analyze the accounts of related parties including First Lady Kim Geon-hee and former Deutsche Motors Chairman Kwon Oh-soo. The account analysis request included First Lady Kim Geon-hee, her mother Choi Eun-soon, and former CEO Kwon Oh-soo. The analysis period was from April 2009 to December 29, 2011.

On the morning of the same day, during the National Assembly's Financial Services Commission audit, in response to a question from Kim Nam-geun of the Democratic Party, Governor Lee said, "Usually, it is common to go through the Exchange - Financial Supervisory Service - Securities and Futures Commission (SFC), but when the prosecution conducts a direct investigation and requests the Exchange, sometimes the Financial Supervisory Service is bypassed."

In response, Representative Kim Nam-geun criticized, "The Deutsche Motors stock price manipulation has caused a public uproar. If there is a report from the Exchange on such an important case, the Governor of the Financial Supervisory Service should also review it and issue a statement, but the fact that he does not see it appears to be a political judgment."

Meanwhile, the prosecution, which has been investigating the suspicion of First Lady Kim Geon-hee's involvement in the Deutsche Motors stock price manipulation, decided not to indict her on the same day. This comes four years and six months after receiving the accusation in April 2020. The prosecution concluded that although three accounts under Kim's name could be seen as used for stock price manipulation, it is difficult to view that she conspired with the stock manipulation forces or was aware of their manipulation.