South Korea's First Lady scandal: Corruption and stock manipulation charges

South Korea's First Lady scandal: Corruption and stock manipulation charges

January 28, 2026
7 mins read
South Korea's first lady, Kim Kun-hee, is facing investigations into corruption allegations including receiving a luxury Dior handbag and involvement in stock manipulation, casting a shadow over her husband's presidency.

South Korea's First Lady, Kim Geun-hee, wife of President Yoon Suk-yeol, finds herself at the center of a growing political and legal storm, facing a series of accusations and allegations that have cast a shadow over her husband's presidency and shaken public confidence. These accusations range from illegally accepting lavish gifts to alleged involvement in stock market manipulation, placing her under intense scrutiny from prosecutors and the media.

Background of the successive scandals

The controversy predates her husband's rise to power, but it intensified significantly after he assumed the presidency. The most prominent issue that sparked widespread public outrage was the so-called "Dior bag scandal." In 2022, a Korean-American pastor secretly filmed himself presenting the First Lady with a luxury Dior handbag worth approximately $2,200. South Korea's anti-corruption law prohibits government officials and their spouses from receiving gifts exceeding one million won (approximately $750) at a time. The leaked video, which was later broadcast, raised serious questions about the integrity of the president's inner circle and led to calls for a thorough investigation.

In addition, Kim Kun-hee faces older and more complex charges related to her alleged involvement in a scheme to manipulate the stock prices of Deutsch Motors, a car import company, between 2009 and 2012. Despite her continued denial of these allegations, the case has remained a political vulnerability that her husband's opponents have repeatedly exploited, demanding a special and independent investigation to uncover the truth.

Political influence and legal accountability

These scandals had a profound impact on the South Korean political landscape. They significantly eroded President Yoon Suk-yeol's popularity and became a liability for his ruling People's Power Party. Many analysts believe that public discontent over these issues was a major factor in the party's crushing defeat in the April 2024 parliamentary elections, which granted the opposition a sweeping parliamentary majority.

Historically, South Korean presidents and their families have not been immune to scandals and legal accountability after leaving office, a phenomenon known as the “Blue House curse.” However, the issues surrounding the current first lady are particularly significant because they are occurring while her husband is in power, increasing the political pressure on him and undermining his ability to implement his agenda. As the investigations continue, the first lady’s political and legal future remains uncertain, and the developments in these cases could have far-reaching consequences for the current presidency and South Korean politics in general.

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