Kim, 72, who finished second to president Jacques Rogge in an IOC leadership election three years ago, is the highest-ranked official to be suspended from the world's most powerful sports organisation.
An IOC statement said the executive board had decided unanimously to deprive Kim of "all the rights, prerogatives and functions deriving from his IOC membership" until the investigation and a report from its own ethics commission had been completed.
A statement from Kim's New York office said the suspension was "contrary to the principle of presumed innocence which prevails in civilised countries throughout the world".
"The IOC should indeed await the results from inquiries in Korea regarding Dr Kim. But this action against him is harsh, unjust and reflects more unfavourably upon its leadership than on the subject of its wrongful action," it said.
Kim is being investigated in Seoul for bribery and corruption in connection with his leadership of the National Olympic Committee and the world taekwondo federation, South Korea's national martial art.
ADMITS MISCONDUCT
Kim was given a "severe warning" by the IOC in 1999 following the bribery scandal over Salt Lake City's successful bid for the 2002
An IOC panel said Kim has used his influence to help get his son John Kim a job funded by the Salt Lake City committee.
Kim is currently in a Seoul hospital after complaining last week of dizziness and showing signs of hypertension following his resignation from the South Korean parliament and senior national sports posts on January 9.
In a statement following his resignation Kim admitted to misconduct.
"I bow my head in deep apology in distressing the nation with my misconduct," Kim said. "I honestly confess during this process I failed to look left and right and made some mistakes."
Last month a Bulgarian court dropped charges against John Kim, who had been in custody awaiting the result of extradition proceedings to the United States. The court's decision followed a letter to Bulgarian authorities from a U.S prosecutor withdrawing charges of fraud and document forgery.
In 2001 Kim stood for election for the IOC presidency in succession to Juan Antonio Samaranch, finishing second behind Rogge.
Last year Kim, who is also president of the General Association of International Sports Federations, was elected as one of the IOC's four vice-presidents.
