0
Jo Young-tak, CEO of IMS Mobility, arrives at the office of the special counsel investigating allegations involving First Lady Kim Keon-hee, in Seoul on August 20. / Source: Yonhap News

A Seoul court on Wednesday rejected arrest warrants sought for three figures implicated in the so-called “Butler Gate” scandal tied to former First Lady Kim Keon-hee.

At 4:30 a.m., Judge Park Jeong-ho of the Seoul Central District Court said there was “insufficient evidence to justify detention or concerns over flight risk and destruction of evidence,” dismissing the prosecution’s request for pretrial detention of Jo Young-tak, CEO of IMS Mobility; Min Kyung-min, CEO of Oasis Equity Partners; and Mo Jae-yong, an IMS executive director.

The ruling came after a detention hearing attended by four prosecutors from the special counsel team led by Min Joong-ki, which is investigating allegations surrounding Kim Keon-hee.

On August 29, the team had sought arrest warrants for the three on charges including breach of trust and embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, and evidence concealment.

The scandal centers on Kim Ye-seong, widely referred to as Kim’s “butler,” who allegedly leveraged her personal ties to solicit 18.4 billion won ($134 million) in investments for IMS Mobility from major corporations and financial institutions in 2023, despite the company’s classification as distressed. Investors reportedly included Korea Securities Finance (5 billion won), HS Hyosung (3.5 billion won), Kakao Mobility (3 billion won), Shinhan Bank (3 billion won), Kiwoom Securities (1 billion won), Gyeongnam Steel (1 billion won), and JB Woori Capital (1 billion won).

Kim Ye-seong was indicted and detained last week on charges of embezzling 4.8 billion won from IMS Mobility.

The court’s rejection of arrest warrants for other key suspects is seen as a setback that could weaken momentum for the special counsel’s broader probe.