Türkiye witnessed another eventful week.
The arrest of former Family and Social Policies Minister and Justice and Development Party (AKP) Deputy Chair Fatma Betül Sayan Kaya as part of the “investment fund investigation” headlined in the media.
President Recep Tayyip Erdoğan’s visit to South Korea was another important development of the week.
The US midterm elections were another largely discussed topic last week.
Former Minister arrested
Former Minister and AKP Deputy Chair Fatma Betül Sayan Kaya was arrested alongside several former senior officials as part of an investment fund investigation that has sent shockwaves through Türkiye’s political establishment.
Sayan Kaya was arrested on charges of “violating the Capital Markets Law” and “membership in a criminal organization” as part of an investigation launched by the Istanbul Chief Public Prosecutor’s Office. She was transferred to Silivri Prison.
Her husband, İlyas Kaya, and former Capital Markets Board of Türkiye (SPK) Chairman İbrahim Ömer Gönül were released under judicial supervision.
The investigation, conducted by the Istanbul Chief Public Prosecutor’s Office’s Bureau for the Investigation of Terrorism Financing and Money Laundering Crimes, has focused on transactions involving shares in the firm “Özata Denizcilik Sanayi ve Ticaret A.Ş”.
According to the prosecutor’s request for pretrial detention, a report prepared by the Capital Markets Board found that Kaya possessed nonpublic information capable of influencing share prices.
The timing of the transactions has emerged as one of the most contentious aspects of the investigation. Prosecutors allege that Kaya sold all her shares on September 16, 2026, just one day before the SPK ordered the liquidation of 131 investment funds.
The court also found that while such transactions normally take two business days, the shares in question were transferred through an internal bank transaction on the same day.
The case file and media reports also contain allegations that Kaya and her husband purchased shares worth 163.046 million Turkish liras (3,25 million US dollar) in April 2026 and generated returns totaling 2.17 billion liras (43,20 million US dollar) from the investment.
According to media reports, Kaya denied all charges during her court testimony, maintaining that she was innocent. Explaining why she and her husband decided to invest in the stock market, Kaya stated:
“My husband and I had some savings, and we wanted to put that money to good use. What I had heard from many politicians around me led us to believe that the stock market was a legitimate investment option, particularly since it was subject to oversight by institutions such as the SPK and the Banking Regulation and Supervision Agency (BDDK). That is why my husband and I decided to invest.”
Kaya also disputed the allegation that she had sold all her shares on September 16, insisting that she had already disposed of more than half of her holdings in August. She further stated that following the liquidation decision, they applied to the Savings Deposit Insurance Fund (TMSF) and returned the amount described as “unjust gains” on October 5.
During her testimony, Kaya declared a monthly income of 500,000 Turkish liras. She also requested her release, explaining that one of her two children had recently undergone open-heart surgery.
Shortly before her arrest, Kaya had resigned from her position as AKP Deputy Chair following the corruption allegations.
President Erdoğan addressed the investigation, saying “Bribery, abuses of power, all of these are being uncovered one by one. People you would never have expected have become involved in these activities. The judiciary is identifying them and taking the necessary action.”
New Party leader Özgür Özel also commented on the developments, saying: “The scandal can no longer be covered up. Erdoğan was forced to sacrifice Fatma Betül Sayan.”
Vatan Party Chairman Doğu Perinçek, meanwhile, argued that the entire system bore responsibility for the scandal.
“The real culprit is the system you have built. The Justice Minister is going after the offenders, but the system itself is guilty. Dollar speculation, stock market profiteering, making commissions from hot money. This is a system built on plunder.
Perinçek also stated that most of the ones involved in the scandal are among AK Party members: “We are talking about 400 profiteers from this scandal. Of those, 380 are AK Party members, including figures from the party’s upper ranks. This fund scandal is an AK Party scandal. In effect, 400 people stole all our labor overnight.”
The investigation remains ongoing, with reports suggesting that further detentions and arrests could follow.
Erdoğan visits South Korea
President Recep Tayyip Erdoğan paid an official visit to Seoul from November 1 to 4, holding high-level talks with South Korean officials, including his counterpart, President Lee Jae-myung.
During their meeting on November 3, Erdoğan and Lee reached agreements on cooperation in nuclear energy, the defense industry and trade.
Erdoğan was accompanied by a large delagete: First Lady Emine Erdoğan, Foreign Minister Hakan Fidan, Energy and Natural Resources Minister Alparslan Bayraktar, National Defense Minister Yaşar Güler, Industry and Technology Minister Mehmet Fatih Kacır, and President of the Defense Industries Agency Haluk Görgün.
Following the talks, memoranda of understanding were signed covering cooperation in science and technology, natural resources, energy and financing for nuclear energy projects.
One of the central issues on the agenda was Türkiye’s planned second nuclear power plant in Sinop. In an interview with South Korea’s official news agency Yonhap, Erdoğan highlighted Seoul’s expertise in the nuclear sector. “We are aware of our Korean friends’ experience in nuclear energy,” he said.
Erdoğan explained that preliminary feasibility studies were underway with the Korea Electric Power Corporation (KEPCO), following the signing of a memorandum of understanding last year. He emphasized that the final decision would depend on several factors, including electricity generation costs, the financing structure and the project’s potential contribution to the Turkish economy.
Erdoğan also noted that Ankara is considering cooperation on the nuclear power plant project and the final decision would be taken in accordance with Türkiye’s national interests.
The two leaders also reaffirmed their shared objective of raising bilateral trade to $15 billion.
During the visit, Erdoğan and the Turkish delegation held extensive meetings with South Korean business representatives.
Erdoğan recalled the historical bonds between the two nations, describing how the “brotherhood forged in blood” through the sacrifices of Turkish soldiers 76 years ago had evolved into today’s strategic partnership.
About economic cooperation, Erdoğan said: “More than 400 Korean companies are operating in our country. We are undertaking joint projects with Korean firms not only in Türkiye but also in markets where Türkiye has a strong presence.”
Reception of the US elections
The Democratic Party secured majorities in both the House of Representatives and the Senate in the US midterm elections held on November 4, dealing President Donald Trump a major political defeat.
The elections were closely followed in Türkiye with several Turkish political leaders sharing their views.
President Erdoğan, who has maintained good relations with Trump, addressed questions from journalists about the US midterm elections aboard his return flight from South Korea.
Erdoğan said “I hope the election results will be beneficial for the American people. Turkish-American relations are deeply rooted and rest on solid foundations,” and continued: “Our greatest wish is for the election results to contribute to lasting peace and stability in our region. To this end, we will continue to maintain close dialogue with both the US administration and the House of Representatives and Senate.”
Asked how the Democrats’ control of Congress might affect US policy in East Asia and relations with Türkiye, Erdoğan adopted a cautious tone, saying “It would probably be a little premature to draw firm conclusions at this stage”.
The president also underlined that Türkiye and the US are NATO allies with a longstanding strategic relationship.
New Party Chairman Özgür Özel offered a sharply critical assessment of the election results:
“Those Trump likes are losing one by one (…) It seems that almost the only person in the US who likes Erdoğan is the man running the US. And the only person in Türkiye who likes Trump is the man running Türkiye.”
Özel said that “authoritarian and populist leaders were continuing to fall from power one after another”.
The Republican People’s Party (CHP) Foreign Policy Council, following a meeting on November 6, issued a statement assessing the implications of the US elections.
The council argued that the new political balance emerging from the midterms should be “assessed from a long-term strategic perspective”. The statement reads:
“It is highly likely that Türkiye will be confronted with new policy frameworks concerning the Persian Gulf, the Eastern Mediterranean, NATO and the Russia-Ukraine conflict. New policies must therefore be developed accordingly.”
Vatan Party Chairman Doğu Perinçek linked the US elections with the Mecca Agreement. He said:
“American voters have effectively said no to the Mecca Agreement as well. Those who signed this agreement relying on the US backing have undoubtedly lost. The Mecca Agreement was dead before it was even born. It has lost its patron.”
Perinçek also claimed that opposition to Trump was not limited to voters, arguing that divisions among the country’s governing institutions were also becoming increasingly pronounced.
According to Perinçek, with the election results, we see an “opposition to American aggression, particularly against Iran, both among voters and within the Armed Forces.”
Perinçek concluded “The US was supposedly going to overthrow the Iranian government, but instead, Trump himself is now being overthrown”.