The Seoul Central District Prosecutors’ Office has decided to drop the anticorruption charges against first lady Kim Keon Hee, closing its investigation into allegations that she received a luxury Christian Dior handbag and other expensive gifts in exchange for favors.

The Seoul Central District Prosecutors Office, which is in charge of the first lady's case, has recently decided not to press charges and report its decision to Prosecutor General Lee One-seok, according to legal circles on Wednesday. The prosecution dropped the case citing insufficient evidence to prove that she had violated the Improper Solicitation and Graft Act.

The decision was made four months after the prosecution chief ordered the district office to set up a special investigation team on the case.

The prosecutors' office reportedly concluded that the charges that Kim violated Korea's antigraft law cannot be made against her in connection with the allegations she illegally received the luxury bag worth 3 million won ($2,158) and other expensive gifts from Korean American pastor Choi Jae-young two years ago.

The investigation focused on the potential illicit ties stemming from Kim's acceptance of the Dior handbag from Choi in September 2022, four months after President Yoon Suk Yeol’s inauguration. The prosecutors primarily investigated the circumstances of how the handbag was delivered to and accepted by her, focusing on whether the transaction constituted a violation of the act.

They questioned various relevant parties, including the first lady, presidential aides and Choi.

As prosecutors examined the personal relationship between Kim and Choi, as well as the context of the luxury handbag, they concluded that it was a personal gift exchanged between friends, with no evidence of quid pro quo. The team reportedly concluded that the bag was given as a gift by Choi to express gratitude to the first lady.

The decision follows one by the Anti-Corruption and Civil Rights Commission in June that it would not seek action against Kim because the law did not include penalty provisions for officials' spouses.

The improper Solicitation and Graft Act does not require quid pro quo to be involved in the receipt of gifts for them to be considered a breach, but gifts to spouses are only considered breaches in connection with the official's duties. The penalty clauses also do not list punishments for spouses themselves, but for officials who know their spouses have accepted prohibited gifts.

Consequently, Yoon is also expected to be cleared of any obligations under the anti-corruption law. If the luxury handbag had been linked to the president’s position as a public official, it would have been Yoon’s responsibility to report it, according to the prosecution.

The inquiry into the luxury handbag began in December last year when Baek Eun-jong, head of the local media outlet Voice of Seoul, accused Kim of violating the antigraft act.

In November 2023, Voice of Seoul published on its YouTube channel a video showing Choi handing over the Dior handbag to Kim during a September 2022 meeting in Seoul. The pastor reportedly filmed the exchange with a camera hidden in a watch, and the handbag was provided by Voice of Seoul.

It was later revealed that Kim had accepted the gift through a statement released by the presidential office and ruling party saying bag was "being managed and stored as a property of the government."