Prosecutors Simultaneously Search Bodyfriend and Han & Brothers... Allegations of Breach of Trust and Embezzlement

Both Parties File Counterclaims Amid Management Rights Dispute

The prosecution conducted a raid on the same day targeting the founder of the massage chair manufacturer Bodyfriend and officials from the private equity fund Han & Brothers, amid allegations of breach of trust and embezzlement.

According to the legal community on the 25th, the Major Crimes Investigation Division of the Seoul Central District Prosecutors' Office (led by Chief Prosecutor Il-gyu Lee) dispatched prosecutors and investigators to secure related materials at Bodyfriend's headquarters in Dogok-dong, Gangnam-gu, Seoul, and Han & Brothers' headquarters in Yeoksam-dong.

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

The prosecution is investigating allegations of breach of trust and embezzlement involving tens of billions of won against Kang Woong-cheol, former chairman of the board and founder of Bodyfriend, and Han Joo-hee, chairman and known largest shareholder of Han & Brothers, among other company officials.

It is reported that they filed complaints against each other last year with the prosecution on charges including embezzlement and breach of trust amid a dispute over the management rights of Bodyfriend. According to the complaints, former Chairman Kang is accused of embezzling over 6 billion won in 'employee invention compensation,' while Chairman Han is accused of embezzling company funds by staying in a luxury hotel suite and charging two months' accommodation fees to the corporate card.

The prosecution plans to summon former Chairman Kang and Chairman Han in turn to verify the allegations based on the analysis of the seized materials.