0
Min Jung-ki, the special prosecutor investigating First Lady Kim Keon-hee, speaks in front of the newly opened office at the KT Gwanghwamun Building in Jongno District, Seoul, on July 2. / Source: Yonhap News

The special counsel team investigating First Lady Kim Keon-hee has launched a full-scale probe into the so-called “Butler Gate,” involving allegations that one of her closest aides received large sums of money from major conglomerates and fled the country.

On July 9, Special Prosecutor Min Jung-ki’s office confirmed that it is investigating Kim, a longtime confidant of Kim Keon-hee, on suspicion of receiving illicit funds through investment deals tied to large corporations. The team is now considering reapplying for a search and seizure warrant after an earlier request was denied, and is also pursuing the invalidation of Kim’s passport, as he has remained overseas since leaving South Korea in April.

Deputy Special Prosecutor Moon Hong-joo stated at a press briefing, “Kim, the primary suspect in this case known as the ‘butler,’ left the country in April, when media reports began to surface, and has yet to return. We are verifying reports that he also moved his family and office addresses.”

Moon added, “We believe there are signs of intentional evasion and destruction of evidence. We have therefore determined that a swift investigation is necessary.” The team suspects that people involved in the case, including affiliated companies, have engaged in evidence tampering by deleting phone data and shredding documents. “If such acts are confirmed, we will respond sternly,” Moon warned.

The heart of the “Butler Gate” scandal lies in whether Kim Keon-hee was involved in the process through which IMS—a company reportedly founded with Kim’s involvement—received massive investments via a private equity firm from major conglomerates. IMS had allegedly received around 50 BMW vehicles from Deutsche Motors, a company tied to Kim Keon-hee’s stock manipulation case, to operate a rental car business.

Kim is said to have first met the First Lady in 2010 at Seoul National University’s Graduate School of Business. He was previously convicted for forging financial documents in a case involving Kim’s mother, Choi Eun-soon.

The special counsel suspects that the investments made by large firms into IMS may have been bribes to curry favor in ongoing criminal cases involving corporate executives, with Kim allegedly acting as an intermediary due to his close ties to Kim Keon-hee.

Although the team recently sought a court warrant to conduct raids, the request was denied on the grounds that the case did not fall under the designated scope of the special counsel’s authority. “After reviewing the legal provisions, we believe this case is within our jurisdiction,” said Deputy Prosecutor Moon, adding that a reapplication is under review.

Meanwhile, the team also summoned current and former executives of construction firm Sambu Construction on the same day to investigate separate stock manipulation allegations. The questioning is seen as preparation ahead of the scheduled summons of Sambu Chairman Lee Il-jun.