IMS Mobility CEO Cho Youngtak Arrested...Suspicions of Involvement with "First Lady Kim Keonhee's Butler"

Special Prosecutor Secures Custody After Second Warrant Request
Charges Include Embezzlement of 3.5 Billion Won and Breach of Trust of 3.2 Billion Won Under the Specific Economic Crimes Act
Accomplice to Kim Yesung, Known as the "Butler" for First Lady Kim Keonhee

Cho Youngtak, CEO of IMS Mobility, who has been identified as an accomplice in the embezzlement case involving Kim Yesung, known as the "butler" for the family of First Lady Kim Keonhee, was arrested by Special Prosecutor Min Junggi's team on December 6.

Lee Jeongjae, the presiding judge in charge of warrants at the Seoul Central District Court, issued the arrest warrant after the pre-trial detention hearing held the previous day, stating there were concerns about destruction of evidence. After the first warrant request was dismissed on September 2, the special prosecutor’s team filed for another warrant about a month later and secured custody of CEO Cho. Before bringing Cho to trial, the special prosecutor’s team is expected to accelerate efforts to substantiate the charges of breach of trust and embezzlement, while also re-examining the process by which IMS Mobility attracted investments and any potential links to First Lady Kim Keonhee.

Youngtak Cho, CEO of IMS Mobility, is leaving the courthouse after completing the pre-trial detention hearing held at the Seoul Central District Court in Seocho-gu, Seoul on the 5th. Photo by Yonhap News

CEO Cho faces multiple charges, including aggravated breach of trust and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, occupational embezzlement, violation of the Act on External Audit of Stock Companies, instigating the concealment of evidence, and bribery related to breach of trust. The investigation found that during the investment process involving several companies in 2023, IMS Mobility embezzled 3.5 billion won from investment funds and committed breach of trust amounting to 3.2 billion won.

IMS Mobility is a company in which Kim Yesung was involved from its founding stage and even holds shares. The company received a total of 18.4 billion won in investments from Kakao Mobility, HS Hyosung, and Shinhan Bank through the private equity firm Oasis Equity Partners. Of this, 4.6 billion won was used to purchase existing IMS shares held by Innovest Korea. Innovest Korea is a shell company actually owned by Kim, and it is the entity through which Kim previously acquired IMS shares. This has led to suspicions that the investment funds may have been used to facilitate Kim’s “exit.”

The special prosecutor’s team has been investigating the possibility that companies investing in IMS Mobility may have provided “insurance-type” or “quid pro quo” funds, considering the close relationship between Kim and First Lady Kim Keonhee. However, it is reported that no direct connection to the First Lady has been confirmed so far.

Kim has already been indicted and detained along with CEO Cho on charges of embezzling 2.43 billion won (embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes) in August, and the first trial arguments are scheduled to conclude on the 22nd.