Kim Ye-sung, known as the 'housekeeper' of Kim Geon-hee, has been acquitted of embezzlement charges by the Supreme Court.
On July 16, the Supreme Court's second division, led by Justice Oh Kyung-mi, finalized the lower court's ruling that found Kim not guilty on some charges and dismissed others related to embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes.
This decision means Kim is now free from legal risks nearly 11 months after being arrested at Incheon International Airport on August 12 of last year.
Kim was accused of embezzling 2.43 billion won by selling shares of IMS Mobility (formerly Bmycar) held under a proxy company, Inovest Korea, for 4.6 billion won to investors in 2023. It was alleged that he falsely lent 2.43 billion won to Jo Young-tak, the CEO of IMS, as part of this scheme.
At the time, Jo was facing a crisis with a fund establishment that was at risk of collapse, and he personally took on debt to prevent it. Investigators found that he later repaid part of the stock sale proceeds through Kim.
The special prosecutor's team viewed this transaction as a conspiracy between Kim and Jo to embezzle company funds. Additionally, Kim faced charges for diverting 500 million won through a fraudulent service contract and for using over 900 million won of company funds for personal expenses, including education for his children.
However, both the first and second trial courts ruled that there was no intent to illegally gain from the 2.43 billion won embezzlement charge, stating that Jo's assumption of personal debt ultimately benefited the company by securing 4.6 billion won in investments. The second trial court also dismissed the special prosecutor's legal misinterpretation claims, asserting that Kim received the stock sale proceeds under the company's name.
Regarding the other personal embezzlement charges, the court dismissed them due to questions about the legality of the investigation, stating that these charges did not fall under the specific investigation targets defined by the Kim Geon-hee Special Investigation Act. The Supreme Court agreed with the lower court's judgment, rejecting the special prosecutor's appeal.
Initially, the special prosecutor's team focused on the possibility that Kim Geon-hee's influence played a role in IMS Mobility, which was in a state of capital impairment, securing over 18 billion won in large-scale investments from major corporations. The investigation team labeled the case as the 'housekeeper gate' and concentrated significant resources on it, but with Kim's acquittal, they ultimately failed to uncover the substance of the allegations.
* This article has been translated by AI.
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