Three Months After Initial Warrant Dismissal
Charges of Embezzlement and Breach of Trust
Cho Youngtak, CEO of IMS Mobility and known as an accomplice of Kim Yesung, who is referred to as the 'butler' of First Lady Kim Geon-hee's family, once again faces the possibility of being detained as of December 5. The decision on whether Cho will be taken into custody is expected as early as tonight.
Youngtak Cho, CEO of IMS Mobility, is appearing before the Min Jung-ki Special Prosecutor's Team investigating allegations related to First Lady Kim Keon-hee on August 20. Photo by Yonhap News
On the morning of December 5 at 10:30 a.m., Lee Jeongjae, the presiding judge in charge of warrants at the Seoul Central District Court, held a substantive review hearing to determine the necessity of Cho's arrest and investigation.
The Min Jung-ki Special Investigation Team requested an arrest warrant for Cho on December 2, citing charges including aggravated breach of trust and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, embezzlement in the course of work, violation of the Act on External Audit of Stock Companies, instigating the concealment of evidence, and bribery related to breach of trust. Previously, in August, the special investigation team had first sought an arrest warrant for Cho on charges of aggravated breach of trust and embezzlement, but the court dismissed the request.
Cho is implicated in the so-called 'Butler Gate' scandal. The 'Butler Gate' refers to suspicions that IMS Mobility (formerly Be My Car), a rental car company in which Kim Yesung, the butler of First Lady Kim, was involved in founding, was essentially in a state of capital erosion. Despite this, investors such as HS Hyosung invested 18.4 billion won in June 2023 through the fund management company Oasis Equity Partners (Oasis). It is alleged that these companies invested in Kim, a close aide of the First Lady, as a means of seeking favors to resolve their own business issues.
In this process, Cho is accused of embezzling 3.5 billion won and committing 3.2 billion won worth of breach of trust while acquiring existing shares of his own company that were held by a venture company called Innovest Korea.
After the court dismissed the first arrest warrant, the special investigation team conducted a supplementary investigation. Initially, the team suspected that those who invested in IMS Mobility provided funds to Kim as a form of insurance or compensation, given Kim's close relationship with the First Lady. However, as of now, the investigation has not established a direct link to the First Lady herself.
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