Ethics questions arise over special prosecutor's stock sales

“Fifteen years ago, personal matters should not influence the ongoing special prosecution,” said Min Joong-ki, the prosecutor investigating First Lady Kim Geon-hee’s alleged corruption. On Oct. 20, Min issued his first statement on selling roughly 10,000 NeosemiTech shares shortly before its 2010 delisting, earning over 100 million won. He stressed the transactions were lawful and pledged to fulfill his duties, rejecting calls for resignation.

It emerged that Min sold the same stock around the same time as Kim, who was under investigation for high-return investments. The statement framed the transactions as personal matters from a period beyond the statute of limitations.

Without a detailed explanation of how the shares were acquired and sold, suspicions persist. NeosemiTech was infamous as a problematic reverse merger on KOSDAQ. The company listed in October 2009 but trading halted in March 2010, just five months later. The stock, with a 500-won face value, surged to 17,800 won per share before collapsing due to accounting fraud.

Some 7,000 small shareholders and institutional investors lost over 400 billion won, while Min reportedly invested 30–40 million won and sold for about 158 million won, a four- to fivefold gain. Without clarification on how he acquired and sold the shares, suspicions of using undisclosed information remain.

Kim’s indictment centered on her stock investments. Her claim that she acted like a typical investor following brokerage guidance was undermined by evidence, including recorded calls with staff. In 2009, when buying Deutsche Motors shares, she also purchased about 800 million won of NeosemiTech shares and sold them for 1.5 billion won after listing. She used terms such as “short selling” and “reverse merger,” which prosecutors said were not typical of ordinary investors.

The fact that the special prosecutor handled the same stocks raises questions. While Kim’s trades are scrutinized, Min’s explanation that he acted on his broker’s advice may be taken at face value.

The Kim Geon-hee investigation has a political dimension, targeting a former administration. Flaws in the prosecutor’s conduct can undermine the credibility of the entire inquiry. Critics have pointed out that Min’s return exceeded fourfold, compared with Kim’s less than twofold. Min’s stock transactions are therefore linked not just to personal conduct but to the trust in the special prosecution team of over 200 people.

Min disclosed his holdings while serving as a high court division chief in 2008. The delisting became a point of debate during the 2010 National Assembly audit. It is unclear when Min learned that Kim held the same shares, but he arguably should have recused himself. Regardless of profit or loss, he should have stepped aside. A perception of impropriety does not fade, and Min, as a former judge, is aware of this. He must provide further clarification or take responsibility for his position.