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Kim Ye-sung, known as First Lady Kim Kun-hee’s “butler.” [Yonhap file photo] |
[Alpha Biz= Kim Jisun] Seoul, August 29, 2025 — Special Prosecutor Min Joong-ki’s team has indicted Kim Ye-sung, a close aide to First Lady Kim Kun-hee often dubbed her “butler,” on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. Kim was indicted while in detention and will stand trial alongside the First Lady, who has also been charged.
At a press briefing, Deputy Special Prosecutor Park Sang-jin announced: “We have indicted Kim Ye-sung on charges of embezzling KRW 4.8 billion (approx. USD 3.5 million) from IMS Mobility.” The amount reflects an increase from the KRW 3.3 billion cited when Kim was first arrested.
The investigation, known as the “Butler Gate” scandal, centers on allegations that IMS Mobility — a rental car company co-founded by Kim with equity ownership — improperly received KRW 18.4 billion in investments from Kakao Mobility, HS Hyosung, Shinhan Bank, and other firms through private equity fund Oasis Equity Partners in 2023.
Prosecutors allege that KRW 4.6 billion of the investment was funneled to acquire IMS shares held by Innovest Korea, a venture company effectively controlled by Kim’s spouse. They further suspect Kim siphoned KRW 2.43 billion by extending sham loans to IMS CEO Cho Young-tak, and diverted additional funds through false service contracts and fraudulent salaries paid to his spouse across multiple entities.
While embezzlement charges were filed against Kim, the indictment did not include breach of trust charges tied directly to the KRW 18.4 billion investment. Still, prosecutors suspect corporate investors extended funds to IMS as a form of “insurance” or quid pro quo, citing the company’s deep insolvency at the time (liabilities of KRW 1.41 trillion against assets of KRW 566 billion).
Alongside Kim’s indictment, prosecutors filed for arrest warrants against several others:
Cho Young-tak, CEO of IMS Mobility — charged with KRW 3.2 billion breach of trust, KRW 3.5 billion embezzlement, accounting violations, and evidence destruction.
Min Kyung-min, CEO of Oasis Equity Partners — breach of trust (KRW 3.2 billion).
Mo Jae-yong, IMS executive — evidence destruction.
The special investigation team said further probes are underway to determine whether misappropriated funds or investment proceeds flowed to the First Lady’s family. Additional summonses of Kim Ye-sung are expected as the investigation deepens.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
