[News Figures] Kim Ki-yu, Accused of Illegal Loans and Sexual Harassment, Served as Dongguk University Director for 9 Years

Kim Gi-yu (69), former chairman of the Management Council and known as the 'second-in-command of Taekwang Group,' has found himself in a dilemma. Kim, who is accused of ordering improper loans worth approximately 15 billion KRW to executives of affiliated companies, is also under prosecution investigation for sexual harassment charges.

Kim Ki-yu, Former Chairman of the Taekwang Group Management Council
Photo by Yonhap News

Born in Nonsan, Chungnam, Kim graduated from Dongguk University with a bachelor's degree in Public Administration and completed his master's and doctoral courses. He served as the head of the Planning and Coordination Office at Dong-A Construction. His connection with Taekwang Group and former chairman Lee Ho-jin began in 2007 when he became CEO of Donglim Construction. Gaining Lee's trust, Kim was appointed CEO of Daehan Chemical Fiber in 2012. He later held key positions such as head of the Group's Management Planning Office. Although he temporarily stepped down following the Fair Trade Commission's referral of the Taekwang Group 'Kimchi and Wine Forced Sales Incident' to the prosecution in 2019, he quickly returned. In 2022, he became chairman of the Management Council, which includes 24 affiliated companies of the group. The chairman of the Management Council is responsible for major decision-making across the group's management. Kim effectively led the group in place of the incarcerated former chairman Lee. Since 2015, Kim has also served as an external director of Dongguk University Foundation, with his term lasting until September 15, 2027.

In August last year, Taekwang Group recognized the issues through an internal special audit and dismissed Kim from his position. The internal audit revealed that in August of the previous year, Kim received a request from an acquaintance, the CEO of a real estate development company, to provide funds for debt repayment and instructed the CEO of a group affiliate to execute a loan worth approximately 15 billion KRW. The group also identified circumstances where Kim inflated construction costs for Taekwang Industry and Taekwang CC and funneled the excess to the acquaintance's company. The prosecution is currently investigating this matter. At the time, the credit review team of the savings bank submitted an opinion to the credit review committee stating that the business risk was high, but the loan was pushed through at Kim's insistence. The prosecution requested an arrest warrant for former chairman Kim on these charges, but the court dismissed it, citing no risk of evidence tampering or flight.

The Women and Children Crime Investigation Division of the Seoul Western District Prosecutors' Office is also investigating Kim for violating the Sexual Violence Punishment Act. Kim is accused of forcibly harassing a female professional golfer whom he summoned in 2022 while serving as chairman of the Taekwang Group Management Council, under the pretext of seeking advice on establishing a group-level golf team. After receiving a complaint from the victim, the police transferred Kim to the prosecution on August 2.

This content was produced with the assistance of AI translation services.