Kim Ye-seong and Kim Sang-min Partly Acquitted in First Trial, Putting Special Counsel’s Investigation Back Under Scrutiny

Financial News reported that both Kim Ye-seong, described as the First Lady’s butler, and former senior prosecutor Kim Sang-min, who was accused of delivering a painting to Kim Keon-hee, were each found partially not guilty in their first-instance trials. The outcome is expected to further fuel controversy over the legitimacy of the ex officio investigation conducted by the Special Prosecutor’s Team for Kim Keon-hee, led by Special Prosecutor Min Joong-ki.
On the 9th, Criminal Division 26 of the Seoul Central District Court, presided over by Judge Lee Hyun-kyung, delivered a mixed verdict of partial acquittal and partial dismissal of charges for Kim, who had been indicted and detained on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes and occupational embezzlement. Kim, who had been in custody since his arrest last August, immediately began procedures for release following the ruling.
The court divided the 4.8 billion won that Kim was alleged to have embezzled into two categories. One involved 2.43 billion won that Kim allegedly embezzled by conspiring with Cho Young-tak, head of IMS Mobility (Be My Car), to transfer funds to InnoBest Korea, a company Kim had established. The other covered the remaining amount. The court held that only the 2.43 billion won transaction fell within the scope of the special prosecutor’s mandate, and ruled that the rest did not, dismissing those charges. The dismissed portion included allegations of corruption related to Kim’s personal and family affairs.
The court also acquitted Kim of the charge that the 2.43 billion won transfer itself constituted embezzlement. Be My Car had seen its planned 5 billion won investment reduced to 3.5 billion won, putting the fund’s establishment at risk. To salvage the deal, Cho personally covered 1.5 billion won with his own debt and succeeded in securing the investment. After the investment was finalized, 4.6 billion won in payment for existing IMS Mobility shares was deposited into InnoBest Korea. Kim then transferred 2.43 billion won to Cho to repay his personal debt. The special prosecutor’s team argued that Kim had effectively embezzled company funds. However, the court stated, "By borrowing 1.5 billion won and making the investment possible, Cho enabled the sale of Be My Car shares that otherwise had no value, thereby realizing an economic benefit," and concluded, "It is difficult to categorically define this as an act of embezzlement."
Former senior prosecutor Kim Sang-min was also partially acquitted. Criminal Division 21 of the same court sentenced him to six months in prison, suspended for one year, on charges of violating the Political Funds Act and the Improper Solicitation and Graft Act. As a result, he too will be released from the detention center.
The court found Kim not guilty of the allegation that he delivered a painting by artist Lee Ufan to the First Lady’s side. It cited several factors: the possibility that Kim Keon-hee’s older brother, Kim Jin-woo, may have paid the purchase price; the special prosecutor’s failure to verify whether the painting was actually delivered to the First Lady; and the possibility that Kim kept the painting in his own possession instead of handing it over. The court pointed out, "The prosecution has failed to prove that the defendant personally purchased the painting in question and provided it to the First Lady," adding, "Regardless of whether the painting was related to his official duties or whether it was authentic, this part of the indictment must be judged not guilty."
However, the court did find Kim guilty of having a businessman pay his car lease expenses on his behalf ahead of his bid to run in the general election.
With the special prosecutor’s team facing a series of acquittals, its upcoming trials are now under serious strain. In earlier proceedings, some charges against an official from the Ministry of Land, Infrastructure and Transport and former Unification Church World Mission Headquarters leader Yoon Young-ho were dismissed, and now most of the allegations against Kim Keon-hee, the figure at the "top" of the investigation, have resulted in not-guilty verdicts. The special prosecutor’s team, however, stated that it "finds the rulings difficult to accept in light of the relevant legal principles and evidence" and announced plans to appeal.
theknight@fnnews.com Jung Kyung-soo and Choi Eun-sol Reporter