IMS Mobility CEO Detained in Embezzlement Examination Linked to Former First Lady’s Associate
SEOUL, Dec. 6 (Yonhap) - Jo Young-tak, CEO of IMS Mobility, was arrested saturday following a court-issued detention warrant, citing concerns over potential evidence destruction.The arrest stems from an ongoing investigation into alleged financial irregularities connected to Kim Ye-seong, an individual known for his close association with former first lady Kim Keon Hee.
The investigation, led by Special Counsel Min Joong-ki, centers on accusations that Jo embezzled approximately 3.5 billion won (US$2.37 million) and engaged in breach of trust amounting to 3.2 billion won. these alleged actions occurred during a 2023 investment round and involved the use of funds to repurchase IMS Mobility shares.
IMS Mobility secured 18.4 billion won in investments from companies including Kakao Mobility, HS Hyosung, and Shinhan Bank, channeled through a private equity firm. Approximately 4.6 billion won of this investment was reportedly used to buy back shares from Innovest Korea, a venture startup later identified as being under the control of Kim Ye-seong.
Investigators are examining whether these transactions facilitated a profitable ”exit” for Kim. While the influence of the former first lady’s connections on the investment decisions was investigated, no direct evidence linking her to the alleged scheme has been found.
Kim ye-seong was indicted in August on charges of co-embezzling 2.43 billion won with Jo Young-tak, and his trial is scheduled to conclude on December 22nd.
Jo’s arrest follows a previous, unsuccessful attempt to secure a detention warrant in September. Prosecutors subsequently added charges of bribery through breach of trust to the case following further investigation. these bribery allegations involve claims that Jo made monthly payments to a journalist in exchange for positive media coverage of IMS Mobility. The journalist is also under investigation for allegedly receiving these bribes.
The investigation continues.
