Jo Young-tak, CEO of IMS Mobility, has been acquitted of charges related to the so-called "Kim Geon-hee scandal," which involved allegations of embezzlement and breach of trust.
On November 12, the Supreme Court's second division, led by Justice Kwon Young-jun, upheld the lower court's ruling regarding charges against Jo, including embezzlement and breach of trust under the Specific Economic Crimes Act.
The court stated, "There is no error in the lower court's interpretation of the law regarding the establishment of breach of trust under the Specific Economic Crimes Act or the investigation targets under the Special Prosecutor Act."
Jo was accused of misappropriating part of 18.4 billion won in investments raised from various companies, including Kakao Mobility, to purchase company shares and to pay 3.24 billion won to two subsidiaries that were in a state of complete capital erosion, causing financial harm to the company.
Additionally, he was charged with embezzling 2.43 billion won by receiving funds under the guise of a loan from stock sale proceeds to cover personal debts, and for falsifying financial statements to reflect cash contributions during a capital increase.
He was also accused of providing 84 million won in cash to a journalist in exchange for favorable coverage and instructing an employee to hide a PC in anticipation of a search by the special prosecutor's team led by Min Jung-ki.
The first and second trial courts ruled that the allocation of investment funds to subsidiaries fell within reasonable management decisions made with prior consent from existing investors and board resolutions. They also noted that there were no separate recommendations for amendments from external auditors regarding the financial statements, leading to acquittals on charges of breach of trust, violation of the External Audit Act, and evidence concealment.
Regarding the charges of embezzlement and breach of trust, the courts determined that they were not directly related to the allegations concerning Kim Geon-hee's investment funds and thus did not fall under the special prosecutor's investigation. They also ruled that the procedures for independently investigating and prosecuting the case without referral were invalid, resulting in the dismissal of charges.
The acquittal of Min Kyung-min, CEO of Oasis Equity Partners, on breach of trust charges was also confirmed. The dismissal of charges against Kim Ye-seong's spouse, Jeong Mo, who was indicted for embezzlement, and former economic journalist Kang Mo, who faced breach of trust charges, was upheld.
However, an IMS Mobility director, who was indicted for concealing evidence before a search, had his fine of 7 million won confirmed by the second trial court.
Previously, the special prosecutor's office investigated whether Kim Geon-hee exerted influence during the 18.4 billion won investment process involving IMS Mobility, co-managed by Kim and Jo, but failed to establish a direct connection between the two. Kim was also acquitted of related charges by the Supreme Court in July, while the police special investigation team referred Jo and Kim to the prosecution in June for fraud related to deceiving investment companies to secure large sums of investment.
* This article has been translated by AI.
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