Consolidated Special Prosecutor Indicts Four Including Lee Sangmin and Kim Daeki Over Presidential Residence Relocation Allegations... First Indictment Since Launch
20 Billion Won in Budget Funds Diverted for Residence Relocation
Yoon Administration Officials Yoon Jaesun and Kim Ohjin Also Indicted
"Ministry of Economy and Finance's Role in Unauthorized Fund Reallocation Under Investigation"
The second Comprehensive Special Prosecutor's Office, led by Kwon Changyoung, has indicted high-ranking officials from the Yoon Suk Yeol administration’s presidential office, including former Minister of the Interior and Safety Lee Sangmin and former Presidential Chief of Staff Kim Daegi, in connection with allegations surrounding the relocation of the presidential residence. This marks the first indictment since the special prosecutor's office was launched 104 days ago in February 2026.
Sangmin Lee, former Minister (from left), Daegi Kim, former Presidential Chief of Staff, Jaesoon Yoon, former Secretary-General of Administration, Ojin Kim, former Secretary of Management. Photo by Yonhap News Agency
View original imageOn June 9, the special prosecutor’s office announced that former Minister Lee and former Secretary of Management Kim Ojin have been indicted on charges including abuse of authority and obstruction of the exercise of rights. Former Chief of Staff Kim Daegi and former Secretary-General of Administration Yoon Jaesoon have also been indicted and detained on the same charges. In addition, Kim Ojin faces further charges of creating and using false official documents.
They are accused of ordering the illegal diversion and execution of 2 billion won in state funds to pay construction costs for the presidential residence relocation in accordance with an estimate submitted by "21Gram," a contractor deemed unqualified, in 2022.
21Gram is a company that sponsored exhibitions organized by Covana Contents, operated by Kim Keon Hee, and also designed and constructed the Covana Contents office. There are suspicions that the company won the contract for the presidential residence expansion project based on its personal ties to Mrs. Kim.
At the time, the budget allocated for the relocation of the presidential residence, specifically under the item "interior work," was about 1.44 billion won. However, the estimate submitted by 21Gram listed a total of approximately 4.12 billion won. Despite this sharp increase in expected construction costs, it is reported that the presidential office proceeded with the project without any verification or adjustment.
According to the special prosecutor’s office, to cover the increased construction costs, the presidential office pressured the Ministry of the Interior and Safety to reallocate approximately 2.09 billion won that had originally been set aside for the maintenance of aging facilities—essentially using those funds to fill the budget gap.
The special prosecutor’s office stated, "We have confirmed that the defendants ignored objections from public officials and ordered the illegal diversion of funds, while also directing each agency to make it appear as though the reallocation was their own decision in order to evade responsibility. During this process, they publicly declared 'the project would be completed within the reserve funds' to deceive the public, and we also confirmed that a department head at the Government Complex Management Office who objected was subjected to personnel disadvantage."
The special prosecutor’s office is also investigating suspicions that the Ministry of Economy and Finance, which is responsible for budget planning and execution management, was involved in the diversion of funds. The special prosecutor said, "We are continuing to investigate additional collusion related to the illegal diversion of funds," and added, "We will do our utmost during the remaining investigation period to fully clarify all public suspicions related to the presidential residence."
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Meanwhile, the special prosecutor’s office recently secured two additional prosecutors dispatched from the Ministry of Justice and plans to deploy them soon. Although they have not yet reached the full authorized number of 15 prosecutors due to an earlier extension of the investigation period, with this latest dispatch, the team now has 14 prosecutors.
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