Kakao Founder Kim Beom-soo Refuses Special Prosecutor Summons in 'Butler Gate' Scandal

Kim Beom-soo's Health Concerns Complicate Investigation

The special prosecutor team investigating allegations surrounding former First Lady Kim Keon-hee's aide is facing a significant dilemma as Kakao founder Kim Beom-soo has expressed his inability to appear for questioning due to health reasons. The investigation centers on the so-called 'Butler Gate' scandal, where Kim Ye-sung, referred to as Kim Keon-hee's 'butler,' allegedly received substantial investments from major corporations for his rental car company IMS Mobility.

Special Prosecutor Oh Jeong-hee announced during a regular briefing at the KT Gwanghwamun Building in Seoul's Jongno District that Kakao Mobility is currently coordinating attendance dates regarding the Butler Gate case summons schedule. When reporters asked whether the decision had been made not to summon Kim Beom-soo, a special prosecutor team official clarified that the list of summons targets remains unchanged.

The investigation has revealed that Kakao Mobility invested 3 billion won in IMS Mobility in June 2023 through a fund established by Oasis Equity Partners. This investment occurred while several of the investing companies were facing their own regulatory challenges, raising suspicions about the true motives behind these substantial financial commitments.

The Scope of Corporate Investment Under Scrutiny

The Butler Gate scandal involves allegations that Kim Ye-sung's company received a staggering 18.4 billion won in investments from major corporations and financial institutions. These investments came from prominent companies including Kakao Mobility, HS Hyosung, Korea Securities Finance Corporation, and Kiwoom Securities. The special prosecutor suspects that these funds may have been invested with the expectation of gaining favors or access through Kim's close relationship with the former First Lady.

IMS Mobility's financial records show a dramatic transformation in 2023. The company recorded 9.2 billion won in outsourcing expenses in 2023, compared to just 200 million won in 2021 and zero in 2022. This sudden spike in outsourcing costs coincided with the capital injection, raising red flags for investigators who suspect Kim Ye-sung may have profited not only from selling shares but also through outsourced services.

The investigation has uncovered that in January 2023, before receiving the investments, IMS Mobility's liabilities stood at 141.4 billion won against assets of only 55.6 billion won, effectively placing the company in a state of capital impairment. This financial reality makes the subsequent massive investments from major corporations all the more suspicious to investigators.

Kim Ye-sung's Flight and International Manhunt

Adding complexity to the investigation is the fact that Kim Ye-sung, the central figure in the Butler Gate scandal, fled South Korea in April 2025 and has remained overseas since then. Special Prosecutor Moon Hong-joo confirmed that Kim departed for Vietnam in April, and his children also left the country on July 1. The special prosecutor's office has stated that neither Kim nor his wife has contacted them since the investigation began.

The special prosecutor team has taken decisive action by requesting the invalidation of Kim's passport and filing for an arrest warrant. Moon Hong-joo explained that they concluded Kim had no intention of returning voluntarily and proceeded with these measures. The investigation has also revealed that Kim's wife canceled her mobile phone plan, making it impossible to contact her, and when investigators reached out to Kim's in-laws, they too claimed they could not get in touch with him.

Kim Ye-sung's background adds another layer of intrigue to the case. He reportedly met Kim Keon-hee while attending Seoul National University's MBA program in 2010. He served as an auditor for Covana Contents, an art exhibition company operated by the former First Lady, from 2012 to 2015. In 2019, he was convicted of forging financial documents on behalf of Kim Keon-hee's mother and received a suspended six-month jail sentence.

Corporate Motivations and Legal Implications

The timing of the investments raises significant questions about corporate motivations. Kakao Mobility was under investigation by the Financial Supervisory Service and Korea Fair Trade Commission for accounting fraud and collusion at the time of its investment. HS Hyosung was also dealing with whistleblower allegations involving its chairman. These circumstances suggest that the companies may have been seeking to influence potential legal outcomes through their investments.

The special prosecutor suspects that Kim Ye-sung leveraged his perceived influence with the former First Lady to attract capital despite IMS Mobility's weak financial profile. The investigation is examining whether corporate funds flowed to the company in exchange for access or favors, considering Kim's proximity to the presidential office. Historical connections between IMS Mobility and Kim Keon-hee further complicate the picture, as the company previously leased 50 BMW vehicles from Deutsch Motors, which was at the center of a separate stock manipulation case allegedly involving the former First Lady.

The legal implications extend beyond the immediate investigation. If proven, these allegations could have serious consequences for the involved corporations and their executives, particularly given the substantial amounts of money involved and the potential for corruption charges.

Special Prosecutor's Strategic Challenges

The special prosecutor team faces multiple challenges in pursuing this investigation. Initially scheduled to summon Kim Beom-soo on July 17, the team has had to reconsider its approach after his health-related refusal to appear. The prosecution is now deliberating whether to reschedule Kim's summons or instead call representatives from Kakao Mobility. This decision reflects the broader strategic challenges facing the investigation team as they work to build a comprehensive case.

The investigation encountered a significant setback when a local court rejected search warrants targeting over 20 locations tied to Kim Ye-sung, citing jurisdictional overreach by the special counsel. Prosecutors have indicated they plan to refile after clarifying the case's relevance, pointing to structural similarities between IMS Mobility's investment patterns and Covana Contents' corporate sponsorships. This legal hurdle demonstrates the complex nature of the case and the challenges investigators face in gathering evidence.

Despite these obstacles, the special prosecutor team remains committed to uncovering the truth. They have successfully summoned other key figures, including former Korea Securities Finance President Yoon Chang-ho and former Daou Kiwoom Group Chairman Kim Ik-rae, who are scheduled to appear as planned. HS Hyosung Vice Chairman Jo Hyeon-sang has had his appearance rescheduled to July 21 due to overseas business commitments.

Broader Implications for Korean Corporate Culture

The Butler Gate scandal reflects broader issues within Korean corporate culture and the intersection of business and politics. The investigation highlights how personal relationships and perceived influence can potentially drive corporate investment decisions, raising questions about transparency and accountability in Korean business practices. The case also demonstrates the ongoing challenges faced by special prosecutors in South Korea when investigating high-profile political and corporate figures.

The scandal has drawn attention to the role of intermediaries or 'fixers' in Korean business culture, where individuals like Kim Ye-sung can allegedly leverage personal connections to secure substantial investments for questionable business ventures. This pattern of behavior, if proven, could have significant implications for corporate governance and regulatory oversight in South Korea.

As the investigation continues, it serves as a test case for South Korea's commitment to transparency and accountability in both corporate and political spheres. The outcome of this case may influence future regulatory approaches and corporate behavior, particularly regarding investments that appear to be motivated by factors beyond legitimate business considerations. The international attention on this case also highlights South Korea's efforts to address corruption and maintain its reputation as a transparent, rule-of-law society.