The mother-in-law of former Prosecutor General Yoon Seok-youl, one of the prospective presidential candidates for the conservative bloc, has been cleared of fraud charges, police said Wednesday.

Yoon's mother-in-law, surnamed Choi, was accused of embezzling entrusted shares of a columbarium business and taking over the control of the entity from the rightful owner.

The 75-year-old was also suspected of forging a balance sheet as if she had around 35 billion won ($31 million) deposited at a bank for purchasing a piece of land in Seongnam, just south of Seoul, with a business partner in 2013.

But earlier this month, the Seoul Metropolitan Police Agency decided to drop the case as Choi is already standing trial on some of the charges related to the alleged document fabrication case and was cleared of the fraud charges.

This marks the second time the police dismissed the case following the prosecution's request to reinvestigate it in January. The police had recommended no charges be brought against Choi the previous month.

The case has drawn keen public attention as Yoon emerged as a potential opposition candidate for next year's presidential election after he resigned from the top prosecutorial post in March in apparent protest against President Moon Jae-in's campaign for prosecution reform.

Choi is currently under another trial on a separate charge of illegally receiving about 2.29 billion won from the National Health Insurance Service while running a senior care hospital in Paju, north of Seoul, from 2013-15, along with three business partners. (Yonhap)