The Seoul Central District Prosecutors' Office found no direct link between President Yoon's duties and First Lady Kim Keon Hee receiving a luxury handbag valued at 3 million won.
The handbag incident ignited a political storm after Kim was filmed receiving the bag, leading to accusations of corruption from Yoon's political opponents.
After extensive questioning of Kim for 12 hours in July, the investigation into her conduct was unique as it marked the first time a sitting First Lady was summoned.
The opposition Democratic Party criticized the investigation's outcome, calling for a special counsel inquiry to uncover the truth behind the handbag scandal.
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