Kim Gun-hee's 'Butler' Kim Ye-seong Arrested, Investigations into 'Butler Gate' Accelerate
Kim Ye-seong, known as the 'butler' of Kim Gun-hee, has been arrested by the special prosecutor's team.
On the 15th, Judge Lim Jeong-bin of the Seoul Central District Court issued an arrest warrant for Kim due to the concerns of "evidence destruction and potential flight."
As a result, the special prosecutor team, following Kim Gun-hee, has secured Kim Ye-seong's custody, and investigations into the so-called 'Butler Gate' involving related companies are expected to intensify.
Kim is accused of embezzling a total of 3.38 billion won from the rental car company IMS Mobility.
Prior to the pre-arrest interrogation that started at 2 PM on the 15th, he arrived at the court building around 12:12 PM, nearly two hours earlier than the scheduled time, avoiding the attention of reporters.
IMS Mobility received an investment of 18.4 billion won in 2023 from Kakao Mobility, Shinhan Bank, and others.
IMS Mobility received an investment of 18.4 billion won in 2023 from Kakao Mobility, Shinhan Bank, and others.
Of this amount, 4.6 billion won was used to purchase IMS Mobility shares that a venture company, Innovest Korea, had acquired from Kim.
The special prosecutor's team has raised suspicions that Innovest Korea may be Kim's actual ownership shell company, as Kim's spouse, Jeong, is listed as the sole internal director of this company.
Investigating the Butler Gate allegations and the flow of funds
The special prosecutor's team believes that out of the 4.6 billion won that flowed to Innovest Korea, 2.43 billion won was siphoned off by Kim as a loan to Choi Yeong-tak, the CEO of IMS Mobility.
Additionally, allegations included in the arrest warrant state that IMS Mobility engaged in false service contracts with Innovest Korea, paid service fees in the million won range, or registered Kim's spouse as an employee in various corporations to issue false salaries, which led to embezzlement of company funds.
With Kim's arrest, investigations into allegations that IMS Mobility received the 18.4 billion won unlawfully in relation to 'Butler Gate' are expected to gain momentum.
Following the issuance of an arrest warrant for Kim Gun-hee on the 12th, the issuance of a warrant for Kim Ye-seong will further propel the special prosecutor's investigations.
At the time of the investment, IMS Mobility was in a state of capital impairment, with liabilities (141.4 billion won) exceeding assets (56.6 billion won).
The special prosecutor team is investigating whether the investors provided this kind of insurance or compensatory funds, taking into account the relationships between Kim and Kim Gun-hee.
The nine companies that invested in IMS Mobility include HS Hyosung subsidiaries (3.5 billion won), Unique (1 billion won), Middle East Finance (500 million won), Korea Securities Finance (5 billion won), Kakao Mobility (3 billion won), Shinhan Bank (3 billion won), Kiwoom Securities (1 billion won), Gyeongnam Steel (1 billion won), and JB Woori Capital (1 billion won).
The special prosecutor team is expected to focus on whether the funds Kim embezzled and various profits flowed to Kim Gun-hee's family.
Under pressure from the issuance of an arrest warrant by the special prosecutor’s team, issuance of a wanted notice, passport invalidation, and the initiation of Interpol red notice procedures, Kim returned to Korea through Incheon International Airport on the 12th.
Before returning, he stated that he would come back if his spouse Jeong's travel ban was lifted, allowing her to go to Vietnam to take care of their children, but the special prosecutor’s team did not accept this.
Ultimately, Kim was arrested immediately after returning and was investigated, leading to his detention through the special prosecutor’s request for an arrest warrant.
Image source: Kim Ye-seong, identified as the 'butler' of Kim Gun-hee's family / News1
