Aftermath of Deutsche Motors Chairman's Detention... Will It Affect Yoon's Approval Rating?

Yoon Seok-yeol, the People Power Party's presidential candidate, is responding to questions from waiting reporters as he enters a restaurant in Yeouido, Seoul, on the 16th to hold a luncheon meeting with first-term lawmakers. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Hyunju Lee] As Kwon Oh-soo, chairman of Deutsch Motors, who is accused of stock price manipulation, has been detained, attention is focused on whether the prosecution-related issue will act as a negative factor for Yoon Seok-yeol, the presidential candidate of the People Power Party.

On the 16th, Judge Lee Se-chang, in charge of warrants at the Seoul Central District Court, issued an arrest warrant for Chairman Kwon, stating, "There is a risk of evidence destruction." According to the prosecution, Chairman Kwon is suspected of manipulating the market by directly purchasing or inducing investment companies to purchase about 15.99 million shares of Deutsch Motors stock (worth about 63.6 billion KRW) over approximately three years from December 2009. The prosecution believes that during this process, favorable internal information was deliberately disclosed and stock manipulation 'players' were mobilized.

Yoon's wife, Kim Gun-hee, is suspected of playing the role of a 'jeonju' (financier) in the stock price manipulation process. Depending on whether Ms. Kim was aware of the price manipulation crimes by Chairman Kwon and others, and to what extent she participated in the stock manipulation if she knew, she is expected to be classified as an accomplice or an accessory. If she merely transferred funds under the pretext of investment without any awareness of the crime, she may be cleared of charges. With Chairman Kwon detained, it is expected that the prosecution will soon decide whether to summon and investigate Ms. Kim, who is involved in this case.

The prosecution is nearing completion of investigations into the individuals related to this case, increasing the likelihood that Ms. Kim will be summoned for questioning. In this case, the fact that she is summoned on suspicion of involvement itself could have a negative impact on candidate Yoon. Moreover, the Democratic Party of Korea has been pressuring candidate Yoon by highlighting the 'headquarters risk (himself, his wife, and mother-in-law).' With the issuance of the arrest warrant, the Democratic Party is expected to intensify its attacks on candidate Yoon, following allegations regarding Ms. Kim's thesis and false credentials.

Attention is also focused on whether candidate Yoon's soaring approval ratings will decline due to this incident. Candidate Yoon currently holds a significant lead over Lee Jae-myung, the Democratic Party candidate, partly due to a kind of 'convention effect.' Except for some polls, the gap in approval ratings between the two candidates appears to be widening. Some argue that the prosecution-related risk has already been mostly reflected in the current approval ratings and is merely a peripheral issue.

This content was produced with the assistance of AI translation services.