'Management Dispute' Bodyfriend Founder and Private Equity Major Shareholder Arrest Warrants Denied

The arrest warrants requested by the prosecution for Kang Woong-cheol, the founder and former chairman of the board of Bodyfriend, a massage chair company, and Han Joo-hee, the major shareholder of the private equity fund Han & Brothers, were dismissed on the 5th.

Nam Cheon-gyu, the chief judge in charge of warrants at the Seoul Central District Court, conducted a pre-arrest detention hearing (warrant substantive examination) for former chairman Kang, Han, and Yang Mo, former CFO of Bodyfriend and known to be a close associate of Han, starting from 10 a.m. the previous day. Around 1 a.m. on the day of the ruling, the judge dismissed the warrants for all three individuals.

Seoul Central District Court, Seocho-gu, Seoul

Judge Nam stated regarding former chairman Kang, "There is room for factual and legal dispute regarding the establishment of major crimes, and considering the degree of evidence for the criminal charges and the defendant's claims, it is necessary to guarantee sufficient opportunity for defense while not in detention." He added, "Considering the relationship between the defendant and Han, the circumstances of the dispute, the initiation and progress of the investigation, their attitude during the investigation, the evidence secured so far, and the defendant's occupation, residence, and social ties, it is difficult to recognize grounds and necessity for detention at this stage."

Regarding Han, the judge explained the dismissal reason, saying, "Some criminal facts related to violations of the Attorney-at-Law Act are substantiated, but there is room for factual and legal dispute regarding fraud and breach of trust related to internal loans. Considering the degree of evidence for the criminal charges, the defendant's claims, the initiation and progress of the investigation, the evidence secured so far, and the defendant's occupation, residence, and social ties, it is difficult to see a risk of evidence destruction or flight at this stage."

Regarding Han's close associate Yang, the judge also said, "Considering the degree of evidence for the criminal charges, the defendant's role and involvement in the overall crime, the defendant's claims, the initiation and progress of the investigation, the evidence secured so far, and the defendant's occupation, residence, and social ties, it is difficult to see a risk of evidence destruction or flight at this stage."

Former chairman Kang and Han & Brothers had filed counterclaims against each other, accusing one another of breach of trust and embezzlement during their dispute over the management rights of Bodyfriend. After the prosecution launched an investigation, including raids on the Bodyfriend headquarters and Han & Brothers' office in April, they requested arrest warrants on charges of breach of trust and embezzlement, but these were dismissed.