HS Hyosung Vice Chairman to Appear Before Special Prosecutors Amid Investment Controversy

Vice Chairman Cho Hyun-sang of HS Hyosung is scheduled to appear before special prosecutors on July 21, following allegations of preferential investment linked to a company where a close associate of First Lady Kim Geon-hee served as an executive. The special prosecutors announced on July 15 that Cho will attend at 10 AM, having adjusted his schedule due to a business trip to Vietnam from July 15 to 18. Initially, he was asked to appear on July 17, but the investigation timeline was pushed back.

The investigation focuses on the substantial investment of 18.4 billion KRW made by HS Hyosung, along with other major corporations like Kakao Mobility and Kiwoom Group, into IMS Mobility in 2023. The circumstances surrounding these investments have raised suspicions, particularly given that the companies involved were experiencing financial difficulties at the time. Notably, Kakao Mobility was under scrutiny by the Fair Trade Commission and financial authorities due to allegations of 'call blocking' and 'cooking the books,' while HS Hyosung was dealing with internal whistleblower issues reported in the media.

The special prosecutors are examining whether the close relationship between Kim Geon-hee and the individual identified as Mr. Kim, who was an executive at IMS Mobility, influenced these investments. In addition to Cho, summonses have been issued for other notable figures, including Kakao founder Kim Beom-soo, former Daou Kiwoom Group chairman Kim Ik-rae, and former Korea Securities Finance Corporation president Yoon Chang-ho. A warrant for Mr. Kim's arrest on charges of breach of trust has also been requested, with authorities urging him to return to Korea for questioning.

IMS Mobility, in its early days, was suspected of being involved in stock manipulation linked to Deutsche Motors, from which it leased 50 BMW vehicles for its operations. The company also sponsored exhibitions organized by Kobana Contents in 2016 and 2019.