Special Prosecutor Secures Custody After Second Warrant Request
Charges Include Embezzlement of 3.5 Billion Won and Breach of Trust Involving 3.2 Billion Won Under the Act on the Aggravated Punishment of Specific Economic Crimes
Accused Accomplice o
Cho Youngtak, CEO of IMS Mobility, who has been identified as an accomplice in the embezzlement charges against Kim Yesung, known as the "housekeeper" of First Lady Kim Keonhee's family, 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 special prosecutor's first request for a warrant was dismissed on September 2, the team reapplied about a month later and secured Cho's custody. Before bringing Cho to trial, the special prosecutor's team is expected to accelerate efforts to prove charges of breach of trust and embezzlement, while also re-examining the process of IMS Mobility's fundraising and any possible connections 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
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, instigation of evidence concealment, and bribery related to breach of trust. The investigation found that during IMS Mobility's fundraising from several companies in 2023, 3.5 billion won was embezzled from the investment funds and 3.2 billion won worth of breach of trust was committed.
IMS Mobility is a company in which Kim Yesung was involved from its founding stage and held 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 fund management company Oasis Equity Partners. Of this amount, 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 is the company through which Kim previously acquired IMS shares. This has led to suspicions that the investment funds may have been diverted to facilitate Kim's "exit."
The special prosecutor has focused its investigation on the possibility that companies investing in IMS Mobility 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 with the First Lady has been confirmed so far.
Kim has already been indicted and detained on charges of embezzling 2.43 billion won together with Cho under the Act on the Aggravated Punishment of Specific Economic Crimes, and the first trial arguments are scheduled to conclude on the 22nd.
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