[Alpha Biz= Kim Jisun] SEOUL, July 4 — Special prosecutor Min Joong-ki has named Cho Hyun-sang, Vice Chairman of HS Hyosung, as a criminal suspect in an expanding investigation into allegations that a politically connected investment may have been made to curry favor with the current administration.
The investigation centers on a KRW 3.5 billion (approx. USD 2.5 million) investment made by HS Hyosung in IMS Mobility, a rental car company allegedly co-founded by Kim Ye-seong, a known close associate of First Lady Kim Keon-hee.
Cho appeared before the special prosecutor’s office on the morning of July 4 at KT Gwanghwamun Building in Seoul but declined to answer media questions regarding whether First Lady Kim influenced the investment, whether he personally intervened in the affiliate’s funding decision, or whether the investment was made in anticipation of favorable treatment amid rising legal risks at the time.
Cho’s status in the investigation was upgraded from witness to suspect following a search and seizure conducted on July 1. According to the search warrant, prosecutors suspect the investment was made “despite no expectation of financial return, for the purpose of avoiding business risks or securing influence via Kim Keon-hee.”
Originally scheduled to appear on July 1, Cho postponed his attendance due to the search. He is the first business executive officially named a suspect in what the media has dubbed the “First Lady’s Housekeeper Gate.”
The case marks the first owner-related risk incident for HS Hyosung, which was established just a year ago.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
