Cho Youngtak, CEO of IMS Mobility, who is implicated in the so-called "Butler Gate" scandal, along with other related suspects, will undergo a detention review on September 2.
Cho Youngtak, CEO of IMS Mobility, attending the special prosecutor's investigation. Photo by Yonhap News
According to the legal community on August 31, the special prosecutor's team investigating Kim Keonhee announced to the media that a pretrial detention hearing (warrant review) for CEO Cho, Mo Jaeyong, Director of Business Support at IMS Mobility, and Min Kyungmin, CEO of Oasis Equity Partners, will be held at 10:30 a.m. on September 2.
On August 29, arrest warrants were requested for CEO Cho on charges of breach of trust and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, for Director Mo on charges of evidence concealment, and for CEO Min on charges of breach of trust under the same law.
All three individuals are reported to have either been directly involved in "Butler Gate" or committed illegal acts during the course of the investigation. "Butler Gate" refers to allegations that IMS Mobility, a rental car company co-founded and partially owned by Kim Yesung-who has been identified as the "butler" of Mrs. Kim-received an improper investment of 18.4 billion won in 2023 from companies such as Kakao Mobility, HS Hyosung, and Shinhan Bank through the private equity fund manager Oasis Equity Partners.
At the time of the investment, IMS Mobility's liabilities (141.4 billion won) exceeded its net assets (56.6 billion won), effectively placing 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 in exchange for favors, considering the personal connections between Mr. Kim and Mrs. Kim.
CEO Cho and CEO Min are each accused of breach of trust amounting to 3.2 billion won in the process of attracting investment and acquiring existing shares. CEO Cho also faces charges of embezzling 3.5 billion won, violating the Act on External Audit of Stock Companies, and instructing the concealment of evidence. Director Mo is accused of attempting to hide evidence, such as moving computers, just before the special prosecutor's team conducted a search and seizure at IMS Mobility.
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