The special counsel team investigating various allegations related to former first lady Kim Keon-hee, led by Min Joong-ki, on the 22nd demanded an eight-year prison sentence for Kim Ye-sung, a close associate of Ms. Kim’s family, in the embezzlement case. The first-instance ruling for Kim is scheduled for February 5 of next year.
The special counsel team, during the sentencing hearing held at the 26th Criminal Division of the Seoul Central District Court (presiding judge Lee Hyun-kyung), demanded an eight-year prison sentence and a confiscation of 432,338,463 Korean won from Kim, who is accused of violating the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement). The special counsel team stated, “Kim abused the corporate system to present personal transactions as corporate activities, thereby processing various expenses and gaining tax benefits,” and added, “As the special counsel investigation approached, Kim attempted to flee overseas and disposed of and concealed mobile phones, indicating poor post-crime circumstances.”
Kim became a subject of the special counsel investigation due to suspicions of receiving ‘preferential investments’ from major corporations and financial institutions by leveraging his acquaintance with Ms. Kim. IMS Mobility, a car rental company that Kim was involved in establishing and held shares in, received an investment of 18.4 billion Korean won in June 2023, during the second year of the Yoon Suk-yeol administration.
The special counsel indicted Kim on charges of improperly acquiring approximately 4.69 billion Korean won from the investment funds through a wholly-owned corporation called InnoBest Korea and using it for personal loans, housing expenses, and children’s education fees. There are also allegations of paying false salaries to his spouse. Regarding the demand for confiscation of around 400 million Korean won on that day, the special counsel team stated, “We excluded amounts attributed to the children or Cho Young-tak, CEO of IMS Mobility.”
Kim’s side argued for dismissal of the indictment, claiming that this case is not subject to investigation under the Act on the Appointment of Special Prosecutors, etc. In his final argument, Kim’s attorney stated, “The so-called ‘Butler Gate,’ which shook the entire nation, began with suspicions of receiving investments and misusing funds by leveraging acquaintance with Kim Keon-hee, and the investigation was conducted comprehensively, but what was the result?” He added, “There is no connection to power-related corruption or Kim Keon-hee; only the defendant’s personal financial transactions remain.”
The defense also mentioned that the special counsel, during the investigation into suspicions of ‘collusion between religion and politics’ involving the Unification Church, did not initiate an investigation despite hearing statements related to the Democratic Party. The attorney argued, “The special counsel claimed that the suspicions involving the Unification Church and the Democratic Party are not subject to investigation and transferred them to the police. Similarly, this case, which is unrelated to Ms. Kim, should also be excluded from the investigation and sent to the police,” and added, “Arbitrarily excluding some cases while prosecuting others as related constitutes targeted prosecution.”
Furthermore, they argued that since InnoBest Korea and others are sole proprietorships with 100% ownership by Kim, the charge of embezzlement does not apply, and since the funds were actually legitimate business expenses or loans, they did not cause actual harm to the company.
In his final statement that day, Kim began, “I had a close relationship with a prosecutor couple in the past. It was about 12–13 years ago when that prosecutor was demoted for upholding his principles.” He continued, “That prosecutor became president, and I was expelled from the company on the grounds that having ties with a specific politician would jeopardize the company.”
Kim stated, “It was my mistake to try to reduce taxes and the company’s burden, and I deeply regret and repent the wrong methods and choices I made,” but denied any connection to Ms. Kim, saying, “I have never been to the Hannam-dong official residence or the Presidential Office.”
He added, “Although a journalist labeled me as ‘Kim Keon-hee’s butler’ and portrayed me as if I had committed enormous wrongdoings, I am not a butler parasitizing on a person in power but an entrepreneur who started a business with a purpose,” and pleaded, “I will reflect on the tax-related issues and take full responsibility. I request leniency to protect my family and return as a law-abiding member of society.”
