Unprecedented Search and Seizure on the Day of Scheduled Questioning
Residence of IMS CEO Cho Youngtak Also Included
Vice Chairman Cho Hyunsang of Hyosung is heading to the event venue to attend the 2023 National Chamber of Commerce Presidents Meeting held on the afternoon of September 12, 2023, at Walkerhill Hotel in Gwangjin-gu, Seoul. Photo by Yonhap News
In connection with the so-called 'Butler Gate' incident, the special prosecutor's team led by Min Jungki, which is investigating Kim Keonhee, has launched a compulsory investigation into IMS Mobility and related entities.
On August 1, the special prosecutor's team conducted search and seizure operations at the residences of individuals associated with IMS Mobility (IMS) and HS Hyosung. Due to these raids, the scheduled questioning of Cho Hyunsang, Vice Chairman of HS Hyosung, originally set for 10 a.m. on the same day, was postponed to August 4. The residences of Cho Youngtak, CEO of IMS, and Vice Chairman Cho in Seongbuk-gu, Seoul, were included in the search targets.
The fact that the special prosecutor's team initiated search and seizure operations targeting Vice Chairman Cho and others on the very day his questioning was scheduled suggests that additional criminal suspicions were uncovered during the investigation process. It is unusual for investigators to conduct raids on the day of a scheduled summons and to postpone the questioning itself.
HS Hyosung and others invested a total of 18.4 billion won in June 2023 through the fund management company Oasis Equity Partners (Oasis) in IMS, a rental car company formerly known as BMyCar, despite knowing that IMS was effectively in a state of capital erosion. Kim Yesung, known as the butler of Mrs. Kim, was involved in the establishment of IMS.
The special prosecutor's team suspects that these companies may have invested in Kim, who is a close aide to Mrs. Kim, for the purpose of lobbying to resolve management issues. The team believes that 'Mrs. Kim's influence' may have played a role in facilitating the investment.
The purchase of IMS shares worth over 4.6 billion won from an investment company called Innovest Korea is also under investigation by the special prosecutor's team. Innovest was reportedly established by Kim in 2022, and its only in-house director is currently his wife, identified as Ms. Jeong. The special prosecutor's team is also tracking the whereabouts of these 4.6 billion won, leaving open the possibility that the funds may have been funneled to Mrs. Kim's side.
The special prosecutor's team originally planned to summon Vice Chairman Cho for questioning on July 21, but the schedule was changed due to his planned business trip to Vietnam. However, Vice Chairman Cho did not respond to the team's attempts to contact him and did not disclose his return or appearance dates even through his legal counsel. The special prosecutor's team publicly urged him to "promptly inform us of your return and appearance dates and cooperate with the investigation." Subsequently, Vice Chairman Cho's side notified the team that he had returned to Korea the previous day and intended to appear before the special prosecutor on August 1.
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