Kim Ye-sung, known as the "butler" of First Lady Kim Keon-hee, was acquitted and had charges partially dismissed in the first trial for embezzlement of company funds.
The 26th Criminal Division of Seoul Central District Court (Presiding Judge Lee Hyun-kyung) ruled on Kim, who was indicted on charges including violation of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement), stating "We declare not guilty on the 2.43 billion won embezzlement portion and dismiss the remaining charges." A dismissal of charges terminates proceedings without examining the merits of the case when formal litigation requirements are lacking or procedural defects exist. Following the acquittal and dismissal rulings, Kim was released from court custody.
The court noted that only 2.43 billion won out of the total 4.6 billion won embezzlement allegations falls within the scope of investigation defined by the special counsel law. The court explained, "The investigation originated from suspicions of improper gains related to First Lady Kim Keon-hee's unlisted stocks. While direct connection was not confirmed, it could naturally be recognized during the investigation process," adding that "relevance is acknowledged in terms of crime identity." However, the court ruled not guilty, stating "The act of allocating part of the 4.6 billion won during the investment process can be viewed as realizing economic benefits," and "It is difficult to conclude this constitutes embezzlement for the benefit of Mr. Cho."
Regarding the remaining charges, the court dismissed them, stating "During the investigation of suspicions, no connection to First Lady Kim Keon-hee or need for additional investigation was apparent, and they cannot be considered related crimes merely because the defendant is the same person." This marks the third case where the court has dismissed charges filed by the special counsel. Previously, courts issued dismissal rulings in the bribery case involving a Ministry of Land, Infrastructure and Transport secretary-level official related to Yangpyeong Expressway favoritism allegations, and in the evidence destruction case of Yoon Young-ho, former global headquarters chief of the Unification Church.
Kim has been identified as a key figure in the so-called "Butler Gate" allegations along with Cho Young-tak, CEO of IMS Mobility. Butler Gate refers to suspicions that a company established by Kim improperly received 18.4 billion won in investments from Kakao Mobility and HS Hyosung in 2023. The special counsel initially investigated Kim focusing on Butler Gate suspicions but could not clearly establish a connection to First Lady Kim Keon-hee. Instead, the special counsel indicted Kim on charges that he conspired with Cho Young-tak, CEO of IMS Mobility, to embezzle 2.43 billion won in company funds during the investment process.
