Cho Hyun-sang, vice chairman of HS HYOSUNG, appeared on the 4th to be investigated by the special prosecutor regarding Kim Keon-hee. The special prosecutor summoned Vice Chairman Cho in connection with allegations that an affiliate of HS HYOSUNG made a remunerative investment in a company associated with Ms. Kim in 2023. The special prosecutor refers to this allegation as the so-called 'butler gate.'
Vice Chairman Cho did not answer reporters' questions about 'the circumstances of the 3.5 billion won investment,' 'whether Ms. Kim was involved in the background of the investment,' and 'whether the investment was made with the expectation of some remuneration during a time when legal risks were raised.'
The special prosecutor is investigating the circumstances under which corporations, including large corporations and financial companies, invested 18.4 billion won in IMS Mobility, a rental car company owned by Kim Yesung, who was known as a confidant and butler of Ms. Kim and her mother, Choi Eun-soon, the wife of former President Yoon Suk-yeol. The companies that invested included an affiliate of HS HYOSUNG, Kakao, Korea Securities Finance, and Kiwoom Securities. HS HYOSUNG invested 3.5 billion won through four affiliates.
At the time of the investment, the corporations were facing legal risks due to ongoing investigations by the prosecution. There are allegations that Mr. Kim expected to resolve these risks by leveraging his connection with Ms. Kim. His company also listed itself as an investor in the exhibition planning company operated by Ms. Kim, Cobana Contents.
Hyosung Group was under investigation for failing to report its affiliates, including Meister Motors, a Volkswagen importer, and Jungang Motors, a Mercedes-Benz dealer, to the Fair Trade Commission in 2023. Earlier, Newstapa reported that Vice Chairman Cho Hyun-sang did not report holding shares in Meister Motors under a borrowed name. The Fair Trade Commission issued warnings to Cho Suck-rai, honorary chairman, and Cho Hyun-jun, chairman, in relation to missed affiliate reports in 2024.
Meanwhile, Mr. Kim is said to have met Ms. Kim while attending the business administration graduate school at Seoul National University in 2010. He served as an auditor for Cobana Contents from 2012 to 2015. Mr. Kim is the person who directly created a false balance certificate submitted to financial institutions when Ms. Kim's mother, Choi Eun-soon, purchased real estate through a borrowed name in 2013. He was indicted in connection with this case and received a six-month prison sentence with a two-year probation.