'State Fund Embezzlement Charges'—Kim Keon-hee's Older Brother Faces Detention Hearing... Remains Silent

[Financial News] Kim Jin-woo, the older brother of Kim Keon-hee, is facing possible detention over allegations related to preferential treatment in the Yangpyeong Gongheung District development project.
On the 19th, Jeong Jae-uk, the judge in charge of warrants at the Seoul Central District Court, is conducting a pretrial detention hearing for Kim Jin-woo, who faces charges of embezzlement of state funds under the Act on the Aggravated Punishment of Specific Economic Crimes, as well as embezzlement and breach of trust, and evidence tampering.
Before the hearing, Kim Jin-woo entered the courtroom without responding to reporters' questions such as, 'What will you clarify?' and 'Do you continue to deny the charges?'
Kim Jin-woo is accused of fabricating false documents to reduce development charges in connection with the alleged preferential treatment in the Yangpyeong Gongheung District development project. The 'Yangpyeong Gongheung District preferential treatment allegations' center on claims that ESI&D, a company owned by Kim Keon-hee's family, received special favors from Yangpyeong County during an urban development project in Gongheung-ri between 2011 and 2016, including exemption from development charges and retroactive extension of project deadlines. Kim's mother, Choi Eun-soon, served as CEO of ESI&D until 2014, after which Kim Jin-woo took over as CEO and reportedly exercised effective control of the company. Kim Jin-woo is suspected of manipulating documents by inflating construction costs and reducing profits to minimize development charges, despite generating approximately 80 billion KRW in revenue from building a 350-unit apartment complex in Gongheung District, Yangpyeong County.
He also faces allegations of hiding expensive jewelry and other valuables, which Kim Keon-hee allegedly received as bribes for personnel appointments or favors, at his mother's residence and Choi Eun-soon's nursing home. During a search and seizure of Kim Keon-hee's family in July, the special prosecutor team discovered a painting by Lee Ufan given to Kim Jin-woo by former prosecutor Kim Sang-min, and a gold turtle delivered by former National Education Commission Chair Lee Bae-yong, prompting further investigation. Additionally, Kim Jin-woo is accused of concealing some items that the special prosecutor team found during the search but could not seize due to their absence from the warrant.
On the 14th, the special prosecutor team requested an arrest warrant for Kim Jin-woo. As for his mother, Choi Eun-soon, the team decided to investigate her without detention, considering her relationship with Kim Jin-woo, her degree of involvement, and the submission of an Alzheimer's diagnosis.
The results of the detention hearing are expected to be announced late tonight at the earliest.
[email protected] Jung Kyung-soo Reporter