South Korea Loses Appeal to Seize $810M in Hidden Stock Market Assets
The South Korean government has lost its appeal in a long-running case to seize assets allegedly held under a borrowed name by Kim Hye-kyung, a former executive at Korea Pharmaceuticals. The Seoul High Court upheld a lower court’s decision, blocking the transfer of stocks worth an estimated 12 billion won (around $810 million) in the stock market.
The dispute began in 2017 when the government filed a civil lawsuit against Kim Hye-kyung. Officials claimed she managed hidden assets and unlisted stocks on behalf of Yoo Byung-eun, the late chairman of Semo Group, who was linked to the 2014 Sewol ferry disaster. The government sought to recover funds to cover disaster-related costs.
The lower court initially rejected the claim, calling the evidence speculative and unclear. Testimonies from employees at Semo Group affiliates formed the basis of the government’s argument, but judges found them insufficient. Kim, a close associate of Yoo, was suspected of handling his slush funds and concealed wealth.
On appeal, the Seoul High Court sided with the original ruling. The decision prevents the transfer of stocks and other assets, leaving the government’s recovery efforts stalled. Legal representatives for Kim, whose identity remains undisclosed in public records, successfully defended against the expropriation attempt.
The court’s rejection means the government cannot seize the contested assets for now. The ruling also sets a precedent for similar cases involving borrowed-name holdings. Officials have not indicated whether they will pursue further legal action.
