Full Trial to Begin on November 17
Kim Yesung’s Side: "Indictment Should Be Dismissed"
The legal team representing Kim Yesung, known as the housekeeper for First Lady Kim Keonhee, denied the embezzlement charges in court. Kim’s side also argued that the case is not based on the claims of Min Jungki, the special prosecutor investigating Kim Keonhee, and insisted that the indictment should be dismissed.
On October 24, the 26th Criminal Division of the Seoul Central District Court (Presiding Judge Lee Hyunkyung) held the second pretrial hearing for Kim, who faces charges including embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. Although defendants are not required to attend pretrial hearings, Kim appeared in court on this day.
Kim was indicted and detained by the special prosecutor’s team on charges of receiving an improper investment of 18.4 billion won from companies such as Kakao Mobility, HS Hyosung, and Shinhan Bank in 2023 through the private equity fund operator Oasis Equity Partners, via IMS Mobility-a rental car company in which Kim participated in the establishment and holds shares. Together with IMS Mobility CEO Cho Youngtak, Kim is also accused of embezzling 2.43 billion won.
On this day, Kim’s side denied the prosecution’s claim that Kim misappropriated investment funds raised by IMS Mobility by diverting them to a shell company under a borrowed name and embezzled tens of billions of won from corporate funds.
The special prosecutor’s team believes that CEO Cho, when a particular company invested only 3.5 billion won instead of the expected 5 billion won before the fund’s establishment, covered the shortfall with his personal debt, putting the fund’s formation at risk. After the investment was finalized and 4.6 billion won in proceeds from the sale of existing shares was deposited into Kim’s shell company, Innovest Korea, Kim transferred 2.43 billion won to Cho to help him repay his debt. The special prosecutor’s team views this as a case where Kim and Cho colluded to embezzle corporate funds from Innovest Korea.
Kim’s side argued, “We set a three-year maturity and interest rate for the loan to Mr. Cho, so we do not understand why this constitutes embezzlement. The loan was made to Mr. Cho under the sole shareholder defendant’s decision.” They further claimed that the charges do not fall within the special prosecutor’s investigative mandate and that the indictment should therefore be dismissed.
The special prosecutor’s team also plans to indict Mr. Cho, who is accused of jointly embezzling funds with Kim, sometime next month.
The court has scheduled the first trial date for November 17, when the full trial proceedings will begin.
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