Charges of Embezzlement and Breach of Trust
No Direct Link to Kim Keonhee Established Yet
The special prosecutor team led by Min Junggi, which is investigating various allegations involving First Lady Kim Keonhee, has referred five individuals, including Cho Youngtak, CEO of IMS Mobility-known as the “butler’s” accomplice Kim Yesung-to trial.
On December 23, the special prosecutor’s office announced to the media that CEO Cho was indicted and detained the previous day on charges of aggravated breach of trust and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, occupational embezzlement, bribery for breach of trust, violation of the External Audit Act, and instigating the concealment of evidence.
CEO Cho is implicated in the so-called “Butler Gate” scandal. “Butler Gate” refers to suspicions that IMS Mobility (formerly Be My Car), a rental car company established with involvement from Kim, was in a state of capital impairment, yet investment firms 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 made the investment to Kim, a close aide to the First Lady, as a form of solicitation to resolve their own business issues.
Cho is accused of embezzling 3.5 billion won and committing breach of trust amounting to 3.2 billion won in the process of acquiring existing shares of his company held by the venture firm Innovest Korea. He is also accused of paying approximately 84 million won to an active journalist in exchange for favorable articles about his company.
Min Kyungmin, CEO of Oasis Equity Partners, the private equity fund manager involved in attracting investment to IMS Mobility, has also been referred to trial on charges of breach of trust amounting to 3.2 billion won.
Additionally, the special prosecutor’s office indicted Director Mo Jaeyong without detention for attempting to conceal evidence, such as moving PCs just before the search and seizure at IMS Mobility, and economic journalist “A” for writing favorable articles about Cho’s company in exchange for money.
Jung, the spouse of Kim-the “butler” and close aide to the First Lady-was also referred to trial on charges of occupational embezzlement amounting to 470 million won.
Kim was indicted and detained in August on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes and is awaiting the first trial verdict scheduled for February 5 next year. At the sentencing hearing on December 22, the special prosecutor’s team requested an eight-year prison sentence and a forfeiture of 432.33 million won for Kim.
The special prosecutor’s office initially suspected that the investors in IMS Mobility provided funds to Kim as a form of insurance or compensation due to their relationship with Kim and the First Lady, but has not found evidence directly linking the First Lady to the case as of now. Since the special prosecutor’s investigation period ends on December 28, the remaining investigation will be handed over to the National Office of Investigation of the Korean National Police Agency.
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