KimMelda:  NIS Fund Used to Pay South Korean President Moon Jae-in’s Wife’s Luxurious Clothes and Jewelry?

2022-4-2, Tara O

South Korean First Lady Kim Jong-sook’s extravagant spending on clothes, shoes, jewelry, and accessories during the Moon administration has become a major controversy in South Korea.  The Blue House refuses to be transparent about the cost of her clothing, so the netizens (public using the internet) have taken on the task, and it is  estimated that the total value of her clothes, many appeared to be haute couture, range from approximately $500,000 to greater than $1,000,000.  South Korean public  is expressing concern that she may have purchased her clothes and accessories with the NIS’ (National Intelligence Service) Special Activities Fund distributed to the Blue House every year in cash.  When the public demanded to disclose how much was spent and from what source, the Blue House responded that it is a national secret and cannot be revealed.  That was the same answer given when the Blue House staff splurged on lavish meals, bars, and spas.  

When pressed further, Blue House staff changed the story, claiming that the Moon couple bought it with their own money.  Given Moon’s income and wealth, the public is not convinced that they could afford the purchases. Moon’s salary is estimated to be ₩13,000,000 (~$10,700) per month after taxes, and their assets have not been reduced in the last 5 years. (0:43)  In addition, they spent over $1 million to remodel their mansion in Yangsan.

There are two issues.  One is that the Special Activities Fund is not designed to be used for Kim Jung-sook’s lavish spending, and it could fall under various criminal categories, including embezzlement and abuse of power.  The other issue is hypocrisy.  Moon turned the Special Activities Fund into a controversy to purge political opponents and civil servants.  Moon heavily condemned the existence of the Special Activities Fund, and maintained it needs to be scrapped, but his Blue House used even more of the Fund.  Furthermore, the Moon couple portrayed themselves to be on the side of the average citizens and even tried to promote the image that they were frugal in early years of the administration by stating Kim wore old clothing.

The Moon administration  aggressively criticized the Special Activities Fund, and charged President Park Geun-hye with violating the Additional Punishment Law on Specific Crimes (bribery, etc.) [특정범죄 가중처벌 등에 관한 법률 위반 (뇌물 등)] (the Special Activities Fund case).  While the judge found that there was no bribe or any loss to the state coffers (original charges), the judge nevertheless sentenced her to 5 years in prison and a fine of ₩2.7 billion ($2.5 million).  The court also imprisoned 8 NIS personnel, including 3 former directors, Nam Jae-jun (남재준), Lee Byung-ki (이병기), and Lee Byong-ho (이병호), as part of political purge (so called Jeokpae Cheongsan) that the Moon administration intensely pursued.

This was extremely unfair and unjust.   The NIS Special Activities Fund has been distributed to the Blue House in previous administrations, including Kim Dae-jung’s and Rho Moo-hyun’s.  Under Moon, the amount of the Special Activities Fund received from NIS increased drastically, although Moon criticized it as something that should disappear.  The Special Activities Fund also was distributed to other government entities, including the National Assembly, Unification Ministry, and the Justice Ministry.  For instance, in 2018, the Special Activities Fund was used to pay all 300 members of the National Assembly, as well as to some of them as incentive pay.  During 2011-2013, Park Jie-won, then a Democratic Peace Party lawmaker and currently the NIS chief, received the highest amount of the Special Activities Fund of ₩590 million ($536,000) over three years within the National Assembly.  Additionally, Park Geun-hye did not use the Special Activities Funds for personal matters, such as her clothes; she paid for them with her own money.  Despite this, Moon’s party made numerous false accusations against Park, including the one about her clothing.

While the Blue House wants to hide the details, the netizens worked diligently and made available online their research on Kim Jung-sook’s wardrobes and accessories, and their estimated prices.  By March 26, the netizens identified at least 178 clothing items, and a YouTuber Dress Kelly who has been tracking Kim Jun-sook’s clothing since May 2017, found even more, putting the number of clothing items at 350, earning Kim Jung-sook a nickname of “KimMelda.” (37:04)  Her accessories and jewelry identified number at least 207.

If the clothes identified by the netizens and Dress Kelly are genuine luxury brands, assuming each cost $1,500 on the low end, that would yield $525,000 ($1,500 x 350) and if $3,000 each, then the total for clothing would be $1.05 million. (44:21)  Some of her clothes identified cost much more.  The calculations do not include jewelry, shoes, hand bags, and other accessories.

When Kim Jong-sook visited the U.S., she wore this salmon-colored coat to an event in Washington, D.C. on July 1, 2017.  The coat was designed by Kim Hae-ja, who is designated as a National Intangible Treasure.  When former U.S. Ambassador Hubbard’s wife admired her coat, Kim took it off and gave it to her on the spot.  The coat is estimated to cost ₩20,000,000 (~$18,000). (10:56)  As a reference, the below clothing items by Kim Hae-ja costs ₩12,500,000 ($14,200), ₩6,500,000 ($7,400) and ₩4,200,000 ($4,800) from left to right.   Kang yong-seok and Kim Se-ui, on their YouTube channel, doubted that Kim Jong-sook would so readily give someone the coat on her back if she paid for such a high cost herself, and that it makes more sense that the coat was paid for with the taxpayers’ money.  (11:41)

The above light blue coat appears to be one by designer Kim Jae-ja, who is designated as the National Intangible Treasure.  The cost is estimated to be between ₩2,000,000 – ₩10,000,000 (~$1,700 – $8,800) each, and she has two.

Kim Jung-sook wore a number of clothes from haute couture  designer Yang Hae-il.  His brand sells under the name Heill.  The design of this blue and white coat is from an expensive art piece, and was copied onto a cloth, before it was made into a coat.  It turned out Yang’s daughter was employed as a civil servant Level 6 at the Blue House as Kim Jong-sook and Moon Jae-in’s  fashion coordinator and a protocol officer.  She is also believed to be a French citizen, which is problematic, since as a protocol officer, she has access to sensitive information, including the president’s and the First Lady’s travel and schedule details.

This particular design of Chanel jacket is not sold regularly in stores, but is specially made with Korean alphabet weaved into the design.  (37:50)  The Channel jacket is said to be worth ₩47,000,000 (~$41,000).  Tak Hyun-min, the Blue House image maker, claimed that Kim Jong-suk rented the jacket from Chanel when she visited France, and returned it, and that Chanel then donated the Chanel jacket to a Hangeul Museum in Korea, and Tak stated it is probably displayed at the Incheon Airport (a three-month temporary loan for displaying purposes).  The Chanel jacket at the Incheon Airport, however, is different than the Chanel jacket that Kim Jong-suk wore—darker areas and lighter areas do not match and the one on the mannequin at Incheon is of a fashion model size, not Kim Jong-sook’s.  The donated jacket on display appears to be the one that the runway model wore, not the one that Kim Jung-sook wore.  Thus, the story appears to be a fabrication.

Tak also stated that Kim paid for her clothes with her credit card.  According to the designer Kim Hae-ja and handmade craftsmen Jeon Tae-so, however, Kim Jong-sook’s secretary paid for 6 Hanbok (Korean traditional dress with a short jacket) and 15 pairs of shoes in cash each time in ₩50,000  (~$45) bills.  Park Soo-hyung of the Blue  House then stated it was paid in cash. Thus, Tak’s statement about using a credit card is yet again false.  Park Soo-hyung also claimed that it was paid in cash as a “courtesy” to the designers. (0:25)  Many designers interviewed have stated they did not provide receipts, because Kim Jong-sook’s side did not ask for them.  This is also problematic, because paying cash with no receipts creates an opportunity to not pay taxes, which prompted the citizens to question whether Kim was helping them not pay taxes, which is an illegal act.

Netizens are combing through various accessories as well, and questioned whether the panther brooch that Kim Jong-sook wore is from Cartier. According to Cartier’s website, the Panther de Cartier collection’s panther brooch retails for $172,000, not including tax.  The design of the panther brooch worn by Kim was different, but some Netizens stated Cartier’s vintage brooch from 10 years ago had a similar look.   Meanwhile, Kim’s supporters countered by stating the panther brooch is ₩20,000 (~$17for

Tak Hyun-min, while trying to defend Kim, stated that Kim wearing the panther brooch had “profound intent,” and the intent was to be considerate of India, because she was told of the importance of a tiger in India.  She met with the Indian Ambassador, Indian actors, and Indian students, and she chose the closest thing to a tiger, which was her panther brooch, said Tak.  A panther does not really look like a tiger.  Perhaps it looks more like the puma that escaped a zoo, which the Blue House ordered executed on September 18, 2018 after the puma story outperformed  the news about the Pyongyang Joint Declaration that Moon Jae-in and Kim Jong-un  signed while Moon visited Pyongyang.

Additionally, the considerate thought was not shown toward the U.S., but nevertheless the “profound intent” displayed when Kim Jong-sook wore an anti-THAAD (Theater High Altitude Air Defense), anti-U.S., and anti-alliance symbol, a light blue butterfly brooch, when she met with President Trump on June 29, 2019 when he visited Korea, and when she met with the Japanese Prime Minister Shinzo Abe at the G-20 meeting in Tokyo on June 28, 2019.  The anti-THAAD groups have used the light blue butterfly as a symbol for their movement.

Another controversy arose with one of her many rings.  It is difficult to tell if the ring has precious stone or pearl on top, but the size is large, and Kim Jung-sook turned her ring around her finger to hide the pearl/precious stone.

https://www.facebook.com/hoverlab2018/videos/457380039456619/?extid=CL-UNK-UNK-UNK-AN_GK0T-GK1C

A collage of her various rings can be found in the link below.

After the Blue House refused to reveal whether the Special Activities Fund was used to pay for Kim Jong-sook’s voracious appetite for luxury clothing and accessories giving national security as excuse, the Taxpayers’ Alliance ( 납세자연맹) sued them for transparency.  The court sided with the taxpayers’ association and ruled that the Blue House needs to reveal the information, but the Blue House still refused to comply, and is appealing the case.  it is unlikely the court would make a ruling prior to Moon’s departure when his presidency ends on May 9, after which the Blue House records go to the presidential archive and become unavailable for at least 15 years, with the option to extend it another 15 years for a total of 30 years.

Another citizens’ group is suing Moon’s Blue House for coercion and embezzlement.  There are multiple petitions on the Blue House petition site, demanding the Moon’s Blue House reveal and explain the details of Kim’s clothing expenses, especially when Moon promised transparency and stressed that the Special Activities Fund should go away.

If Kim Jung-sook used the NIS Special Activities Fund given to Moon’s Blue House for her extravagant spending, then that is a major breach of public trust.  The public demands accountability, and Moon Jae-in and Kim Jung-sook need to answer.  This also begs another question:  Why were the former NIS chiefs and Park Geun-hye unfairly and unjustly punished with imprisonment and fines for NIS providing Special Activities Fund to the Blue House? Even though the same provisions were made under the Moon and previous administrations, as well as other government entities, such as the National Assembly, no Blue House and National Assembly officials were prosecuted.  This  exposes yet another problem of the breakdown in the rule of law.  The Moon administration will be remembered for its hypocrisy and the breakdown of rule of law.