Sewol owner's key aide facing arrest
By Jung Min-ho
Kim Hye-kyung
Prosecutors asked a court Thursday to issue an arrest warrant for Kim Hye-kyung, CEO of Korea Pharmaceuticals, who allegedly helped manage the hidden assets and a slush fund of the late Yoo Byung-eun, owner of the sunken ferry Sewol.
The prosecution believes Kim, 52, has information regarding the location of these assets and hidden cash, and is also seeking to charge her with tax evasion, embezzlement and breach of trust.
There has been speculation that had an extramarital affair with Yoon.
Kim was deported from the United States, Tuesday, and was immediately taken into custody at Incheon International Airport.
At the Incheon District Prosecutors’ Office, Kim was questioned over suspicions she was involved in embezzling about 20 billion won ($23 million) from a religious organization affiliated with Cheonghaejin Marine, a shipping firm that operated the Sewol, in addition to helping Yoo avoid taxes.
Kim has denied these allegations.
She is also suspected of having been involved in the management of Chonghaejin Marine and other Semo Group affiliates owned by the Yoo family.
Prosecutors also believe that Kim managed Yoo’s slush fund and hidden assets, including bank accounts opened in other people’s names, company shares and real estate.
“It feels like she had prepared well for the investigation during her stay in the United States,” a source from the prosecution was quoted as saying.
She entered the U.S. in March on a 90-day visa waiver program, but overstayed there in an apparent attempt to escape being investigated following the disaster, which killed more than 300 people.
Previously, prosecutors asked Incheon District Court to hand down a 4-year prison term to Yoo Dae-gyun, Yoo’s eldest son, on charges of embezzling more than 7 billion won in company money and breach of trust.
They have requested prison terms of between one and four-and-a-half years for eight other aides to Yoo. These people were heads of companies set up by the Yoo family, and were indicted with or without physical detention on charges of embezzlement and breach of trust.