Cho Young-tak, CEO of IMS Mobility, who is implicated in the so-called "butler gate" allegation that he touted his ties with Kim Keon-hee to secure investments, has been arrested.
Lee Jeong-jae, Director General and warrant-judge at the Seoul Central District Court, issued an arrest warrant early on the 6th for Cho, who faces charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust), occupational embezzlement, violating the Act on External Audit of Stock Companies (External Audit Act), instigating evidence concealment, and bribery for breach of trust, saying there was concern he would destroy evidence.
With this, the special counsel team led by Min Joong-ki secured Cho's custody on its second request. After its first arrest warrant request on Sept. 2 was rejected, the special counsel team sought a warrant again on the 2nd. The team said Cho, while running IMS Mobility, which Kim Ye-seong—identified as the "butler" for Kim's family—helped establish and held equity in, was involved in soliciting improper investments.
Prosecutors say Cho embezzled 3.5 billion won and committed 3.2 billion won in breach of trust as IMS Mobility raised funds from multiple corporations in 2023 and used part of the investment to buy back its own existing shares. IMS Mobility is a company that Kim Ye-seong, known as Kim's butler, took part in establishing and held equity in.