[News Space=Reporter seungwon lee] The special prosecutor's team (Special Prosecutor Min Joong-ki) has begun its full-scale investigation into the so-called 'Butler Gate' surrounding former President Yoon Seok-yeol's wife Kim Kun-hee.

The key point is that IMS Mobility (formerly Bimaica), which was founded by Mr. Kim (48), who was called the 'butler' of the Kim family, attracted a total of 18.4 billion won in investment from Kakao Mobility, HS Hyosung, and Korea Securities Finance, despite being in a state of capital impairment in 2023.

The special prosecutors confirmed that Mr. Kim left for Vietnam in April of this year when media coverage began and has not returned, and that he has even moved his family residence and office. Accordingly, they have launched an intensive investigation, including the cancellation of his passport and the re-application of a search and seizure warrant.

IMS Mobility Investment Structure and Timing… A ‘Puzzle’ of Suspicion

According to legal circles, IT company IMS Mobility (formerly Bimaica) received 18.4 billion won in investments from Kakao Mobility, HS Hyosung, and Korea Securities Finance in 2023. Mr. Kim, who is said to have first met Ms. Kim in graduate school in 2010, was involved in the establishment of IMS Mobility in 2013 and served as the company's director from June 2018 to March 2021.

He also took charge of the audit of Cobana Contents, which was operated by Mrs. Kim for three years from March 2012. In particular, Mr. Kim was indicted as an accomplice in the case of Mrs. Kim's mother, Choi Eun-soon, for forging a bank statement, and was sentenced to six months in prison and one year of probation.

Above all, IMS Mobility was in a state of capital impairment, with debt (KRW 141.3 billion) exceeding its net assets (KRW 55.6 billion). The special prosecutors are looking into the background of large corporations making large-scale investments in companies in management crisis, along with whether there was a quid pro quo, and the influence of Kim Gun-hee's associates.

HS Hyosung, 'Owner Risk' and Repeated Illegal Behavior

The timing of HS Hyosung’s investment coincides with the period when various owner risks, such as the exposure of internal corruption within the group and the management’s failure to report to affiliates, were raised. In fact, Hyosung Group has been investigated by the National Tax Service and the prosecution in the past for large-scale fraudulent accounting, tax evasion, and possession of assets under false names.

After the foreign exchange crisis in 1997, it was revealed that the company had evaded corporate taxes by 1 trillion won through fraudulent accounting, and that it had evaded income taxes by managing assets under other people's names worth over 100 billion won. Hyosung has admitted to such fraudulent accounting and possession of assets under other people's names.

Investment by large corporations: ‘business viability’ or ‘relationships’?

Kakao Mobility and HS Hyosung claim that they “invested after seeing the business potential,” but the special prosecutors are focusing on the fact that at the time of the investment, these companies were each under investigation by the Fair Trade Commission and financial authorities for fraudulent accounting and internal corruption, and that IMS Mobility is closely intertwined with Kim Kun-hee’s family. In the early days of its establishment, IMS Mobility was found to have many business connections with the Kim family, such as long-term leases of 50 BMWs from Deutsche Motors for use in business.

Special Prosecutor's Next Steps and Prospects

The special prosecutor is obtaining data from IMS Mobility and major investment companies through voluntary submission after the court rejected the search and seizure warrant, saying it is “not a subject of investigation under the Special Prosecutor’s Act.” The special prosecutor emphasizes that the suspicion of bribery sponsorship of Kobana Contents, which has a similar case structure, is a subject of investigation under the Special Prosecutor’s Act, and plans to launch a compulsory investigation by reapplying for a warrant.

It is gradually becoming clear that the 'Butler Gate', in which large corporations and financial institutions invested 18.4 billion won in venture companies in a state of capital erosion, is more than just a simple investment.

In particular, the repeated owner risks and various wrongdoings of Hyosung Group and HS Hyosung are further amplifying the suspicions surrounding this incident. Attention is being paid to how far the special prosecutor's investigation will go and whether the entangled links between large corporations, politicians, and venture companies will be clearly revealed.