Special Counsel Drops Charges Against Choo Kyungho and Suspends Indictment for Kim Wansub in 2.8 Billion Won Presidential Residence Budget Diversion Case

"Ministry of Economy and Finance Only Gave Passive Approval"
Lee Sangmin, Kim Daegi, Yoon Jaesoon, Kim Ojin Previously Referred for Trial

Kwon Changyoung's second special investigation team has closed the case related to allegations of budget diversion during the presidential residence relocation process, issuing a suspension of indictment for former Minister of Environment Kim Wansub and taking no criminal action against Daegu Mayor Choo Kyungho.

Daegu Mayor Choo Kyung-ho is attending the "61st General Assembly of the Korean Association of Provincial Governors" held on the 14th at the conference room of the Korean Association of Provincial Governors in Jongno-gu, Seoul. 2026.8.14 Photo by Kang Jinhyung

According to the legal community on August 21, the special prosecutor’s team issued a suspension of indictment for former Minister Kim on the previous day and decided not to bring charges against Mayor Choo, who was serving as Minister of Economy and Finance at the time.

Former Minister Kim served as Director General for Budget at the Ministry of Economy and Finance for about one year starting in June 2022, immediately after the launch of the Yoon Suk Yeol administration. He oversaw the management of budget formulation and execution.

The special prosecutor’s team had been investigating suspicions that, during the 2022 presidential residence relocation project, about 2.8 billion won from the Ministry of the Interior and Safety's budget was illegally diverted to pay construction costs to an unqualified firm, 21gram.

During the investigation, it was also confirmed that Yoon Jaesoon, who was then the presidential secretary-general for general affairs, sent a text message to the Ministry of the Interior and Safety indicating “Ministry of Economy and Finance review completed.” As a result, the special prosecutor’s team examined the possibility that the Ministry of Economy and Finance may have participated in or condoned the budget diversion process.

However, the team concluded that, unlike the Presidential Office and the Ministry of the Interior and Safety—which were actively involved in the budget diversion—the Ministry of Economy and Finance's role was limited to passively approving the budget. They also determined that former Minister Kim, as a career government official at the time, approved the budget as part of his official duties and was not actively involved in the wrongdoing.

It has also been reported that there was no evidence found of Mayor Choo, Kim’s superior at the time, being involved.

Previously, the special prosecutor’s team had referred former Minister of the Interior and Safety Lee Sangmin, former Presidential Chief of Staff Kim Daegi, former Secretary-General for General Affairs Yoon Jaesoon, and former Administrative Secretary Kim Ojin to trial concerning the same allegations.

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