'25 Billion Embezzlement' Forced Summon of Yoo Hyuk-gi
Hyuk-ki Yoo (50), the second son of former Semo Group chairman Yoo Byung-eun (deceased in 2014), who is accused of embezzling 25 billion KRW, has been detained by the prosecution.
The Criminal Division 6 of Incheon District Prosecutors' Office (Chief Prosecutor Son Sang-wook) arrested Yoo on the 5th on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. On the same day, Judge Yoon Jeong-in of Incheon District Court conducted a pre-arrest detention hearing (warrant review) in the afternoon and issued an arrest warrant for Yoo, citing "risk of flight and risk of evidence destruction."
During the warrant review, Yoo reportedly admitted that consulting advisory fees and photo sales proceeds were transferred to personal accounts, but denied the charges by stating that he never directly instructed affiliates or representatives regarding these transactions and never used the funds personally.
He also raised concerns about the legality of the execution of the arrest warrant on the plane, arguing that the tax evasion charge cited in the warrant is not included among the crimes for which extradition is permitted.
Yoo is accused of conspiring with affiliate representatives close to his father to embezzle a total of 25 billion KRW under the pretext of consulting fees, diverting the money to personal accounts or overseas corporations. This includes amounts he received as advance payments for photos from various affiliates to fund AHAE PRESS INC, a U.S. company that produced his father's photographic works.
Initially, the prosecution specified the amount of Yoo's criminal charges as 55.9 billion KRW when announcing the interim investigation results related to the 2014 Sewol ferry disaster. However, due to the extradition treaty between Korea and the U.S., the amount was reduced to 29 billion KRW.
According to Article 15 (Principle of Specificity) of this treaty, an extradited person cannot be punished for crimes other than those for which extradition is permitted. To prosecute additional crimes, consent from U.S. authorities is required.
Subsequently, the prosecution recalculated the embezzlement amount based on the trial rulings of Yoo's accomplices and specified the amount in the arrest warrant as 25 billion KRW. They also plan to obtain U.S. government consent to prosecute Yoo for additional charges if recognized during the investigation.
Earlier, the special investigation team of Incheon District Prosecutors' Office identified the Yoo family as the de facto controlling shareholders of the shipping company Cheonghaejin Marine shortly after the 2014 Sewol ferry disaster and conducted a large-scale investigation into management corruption. At that time, the prosecution judged Yoo as the de facto successor to his father, former chairman Yoo, and requested extradition from the U.S., forcibly repatriating him nine years after the Sewol ferry disaster.
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