Special Prosecutor Indicts Kim Yesung, 'Butler' to Kim Keonhee, on Embezzlement Charges

"Embezzlement Amount Increased to 4.8 Billion Won in Indictment"
Arrest Warrants Sought for IMS and Oasis CEOs and One Other

On August 29, the special prosecutor team led by Min Jungki, which is investigating allegations related to First Lady Kim Keonhee, indicted Kim Yesung-identified as the "butler" for Kim Keonhee's family-while he was in detention.

Mr. Kim Yesung, identified as the "butler" for Mrs. Kim Gunhee's family. Photo by Yonhap News

Deputy Special Prosecutor Park Sangjin announced at a press briefing that afternoon, "We have indicted Kim Yesung, the suspect in the 'Butler Gate' case, on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes." In addition, arrest warrants have been requested for three others involved in the case-Cho Youngtak, CEO of IMS Mobility; a director surnamed Mo; and Min Kyungmin, CEO of Oasis Equity Partners-on the same charges.

The so-called Butler Gate refers to suspicions that IMS Mobility, a rental car company that Kim participated in founding and in which he holds shares, unjustly received 18.4 billion won in investments in 2023 from companies including Kakao Mobility, HS Hyosung, and Shinhan Bank through the private equity fund operator Oasis Equity Partners.

Initially, the amount of embezzlement specified in Kim's arrest warrant was reported to be around 3.3 billion won. However, the indictment now states that the total amount embezzled by Kim is 4.8 billion won, increasing the overall figure.

At the time of the investment, IMS’s liabilities (141.4 billion won) exceeded its net assets (56.6 billion won), effectively putting the company in a state of capital impairment. The special prosecutor's team suspects that the investors provided funds as a form of insurance or compensation, considering their personal ties with Kim and First Lady Kim Keonhee.

The special prosecutor's team is also investigating whether the funds misappropriated by Kim and various profits were funneled to First Lady Kim Keonhee's family. It is expected that Kim will be summoned again for further questioning as the investigation into these suspicions intensifies.