Yoo Byung-eun (Korean: 유병언;
Hanja: 兪炳彥) was a South
Korean businessman and inventor, who as a photographer was known
under the art name Ahae. He was known as "the millionaire
with no face" due to his reclusiveness.
Yoo was chairman of Chonghaejin Marine,
which operated the MV Sewol ferry between Incheon and Jeju when it
sank. The sinking became known as the Sewol ferry disaster. When the
Incheon District Court issued a warrant on 22 May 2014 for his
arrest, Yoo went into hiding and was South Korea's most-wanted
fugitive. In June 2014, police discovered a body that was confirmed
to be Yoo's in July 2014. An investigation into the cause of death
was inconclusive because the body was too decomposed.
Early life and education
Yoo was born in Kyoto, Japan to Korean
parents on 11 February 1941. Yoo's family returned to Korea following
the liberation from Japanese colonial rule in 1945 and settled in
Daegu, where Yoo graduated from Seonggwang High School.
Career
Religious call
According to the U.S.-based non-profit
organization Evangelical Media Group created by Yoo in 2001, "he
first began to live for the sake of the gospel in 1961," and
that he "worked as an inventor and businessman to support the
spreading of the gospel all over the world". Yoo was one of
11 students admitted to the Good News Mission Bible school
established in Korea by American and English missionaries, but he was
expelled. He founded what later became the Evangelical Baptist Church
of Korea, also known as the Salvation Sect, in 1962 with his
father-in-law, Pastor Kwon Shin-chan (권신찬;
1923–96). The church was held to be a cult by a conservative
Christian denomination, the General Assembly of Presbyterian
Churches, in 1992.
Acquisition of Samwoo Trading and
founding of Semo Corp.
Yoo, while still serving as a pastor,
got his start in business when acquiring the bankrupt textile company
Samwoo Trading Co. (삼우무역)
in 1976. He took over as CEO in 1978, and turned it into a toy
manufacturing and export company. Yoo went into shipping when he
founded Semo Corp. (주식회사 세모)
in 1979, a holding company that came to span shipping, shipbuilding,
domestic ferry businesses, electronics, real estate, cosmetics,
paint, stuffed toys, pewter, and various other ventures. Semo started
operating ferries on Seoul's Han River in 1986, two years before the
city held the Summer Olympics.
Odaeyang mass suicide
Yoo came to public attention in
connection with the Odaeyang mass suicide in 1987. Police were
investigating accusations against a 48-year-old woman, Park Soon-ja,
saying that she had swindled ₩8.9 billion (~US$8.7 million) from
about 220 people. Odeyang Trading Co. was a firm that established by
Park who used to attend Evangelical Baptist Church of Korea and
Jehovah's Witnesses in the past. Yoo has denied any link to the
group. On 29 August 1987 thirty-two members of the sect who believed
in doomsday, including Park Soon-ja and her three children, were
found dead, bound and gagged. Police assumed the event was a
murder–suicide pact, and the prosecution initially suspected that
Yoo was linked to the case; but he was never charged, and the police
closed the case as a mass suicide. After six people, including a
former follower of Park named Kim Do-hyun, surrendered to authorities
on 10 July 1991, the case was reopened and found money transactions
between Odaeyang Trading Co. and a member of Evangelical Baptist
Church. However, the money transactions revealed that they had
nothing to do with Odaeyang Trading Co. case, and private loan of
Odaeyang Trading Co. Those were normal payment remittances of goods
between Park and the member of Evangelical Baptist Church before
establishment of Odaeyang Trading Co. Yoo was arrested and, in 1992,
convicted of "habitual fraud under the mask of religion"
for his role in colluding with one of his employees to collect
donations from church members in the amount of ₩1.2 billion
(~US$1.15 million) and invest them in his businesses. He served a
4-year prison term. In November 2014, report says Incheon District
Prosecutor's Office confirm in May there was no connection between
Yoo and Odaeyang incident.
Semo Corp. bankruptcy
By 1990, Semo Corp. had 1,800
employees, but the ferry businesses suffered maritime accidents. In
1990, 14 Semo workers were killed when their cruise ship on the Han
River was hit by another ship. The company was cleared of any
liability for the incident. Semo grew into the biggest ferry operator
by 1994, operating 30 ships, and once had nearly 3,000 employees.
Semo Group filed for bankruptcy with
more than ₩300 billion (~US$294 million) in debts amidst the 1997
Asian financial crisis, in the wake of a series of highly publicized
scandals, citing business diversification as the cause of a cash
shortage that had fueled a rise in debts in its bankruptcy protection
petition, and was liquidated.
After Semo's bankruptcy, Yoo's family
continued to operate ferry businesses under the names of other
companies, including one that eventually became Chonghaejin Marine,
and grew to become the monopolistic operator of ferries linking
Incheon and Jeju.
Chonghaejin Marine Company Ltd. was set
up two years later on 24 February 1999, a day before a court approved
the restructuring of the bankrupt Semo, and became a key entity to
consolidate Semo's shipping business, taking over ships and assets
held by Semo Marine, and had its debts written off.
Other ventures
According to Chaebul.com, an online
information provider on large businesses, Yoo and his family own 30
business operators, with 13 doing business abroad such as in the
U.S., Hong Kong and France. Their combined assets amount to some ₩500
billion (~US$480 million). The collective assets of the 13 overseas
operations surged to ₩166.5 billion (~US$158 million) at the end of
2013. In France in 2012, Yoo made headlines prior to his photo
exhibition in the Tuileries Garden at The Louvre when he through his
public relations company, Ahae Press, bought the abandoned village of
Courbefy for €520,000 (US$663,000, ₩767.5 million). Yoo had seen
it on CNN, and wanted to set up an "environmental, artistic
and cultural" project in the village. Yoo has a wide range
of other business interests according to official documents and
information on company websites. He owns a plantation in the United
States called 123Farm, one of the largest organic lavender farms in
California started in 2001 at the site of the Highland Springs
Resort, a 2,400 acres (970 ha; 3.8 sq. mi) property consisting of a
56-room hotel, conference center, and restaurants. Yoo was chairman
of the board of the company that bought the resort in May 1990 for
US$6.75 million. I-One-I Holdings subsidiary Dapanda owns 9.9 percent
of the Highland Springs Conference and Training Centre at the resort,
according to regulatory filings.
Inventions
As an inventor, Yoo holds multiple
patents, one being for a colonic irrigation system, for which he
received an International Federation of Inventors' Associations'
prize at the 2006 Seoul International Invention Fair. The invention
is marketed in the United States, Canada, Mexico, Germany, South
Korea, Philippines, and Malaysia by NaeClear, and is sold in South
Korea by the company Dapanda. It "arose from the concept of
Hemato-Centric Health, which revolves around the blood as being the
center of life." supposedly a concept created by Yoo and his
non-profit research organization Hemato-Centric Life Institute (New
York) chaired by his younger son Keith H. Yoo (Yoo Hyuk-kee, 유혁기;
born 1972); sponsored by NaeClear Co., Ltd. and daughter Yoo Som-na's
company Moreal Design Inc., Yoo delivered keynote speeches at the
2010–13 Hemato-Centric Life Forum meetings in Seoul organized by
Hemato-Centric Life Foundation.
Ahae
Ahae (아해),
which means "child" in old Korean language, was a
nickname used in reference to Yoo in correspondence on an Evangelical
Baptist Church website EBC World. Through his PR companies Ahae
Press, Inc. in New York, Ahae Press France in Paris, and Ahae Press
Ltd. UK in London, Yoo has exhibited and marketed himself as the
photographer who goes by the name Ahae. Yoo was unknown as a
photographer before 2011.
The project titled Through My Window
began in early spring 2009 and continued for 4 years, during which
time Yoo allegedly took about 2.7 million photographs, all through
one window, which equates to a rate of roughly one photo every 60
seconds. The collection mainly consists of natural scenes shot
through the window of Yoo's own studio. The location is the rural
commune belonging to the Evangelical Baptist Church called
"Geumsuwon" (금수원)
east of Anseong south of Seoul, where Yoo lived.
Yoo first exhibited Through My Window
in the Vanderbilt Hall of Grand Central Terminal, New York City, in
April 2011; co-produced by daughter Yoo Som-na's company Moreal
Design, it was organized by Hemato-Centric Life Institute, and
sponsored by Highland Springs Resort and Bear Family Green Club. His
exhibition Through My Window: Vibrancy and Serenity was on display on
the same location in October 2011. Yoo did not attend the exhibition
that was unveiled by his second son, Yoo Hyuk-kee, known outside
South Korea as Keith H. Yoo. Keith, as CEO of Ahae Press, curated his
father's exhibitions.
As a traveling exhibition, Through My
Window was then on display in Europe at the National Gallery in
Prague, Clarence House Gardens, Lancaster House, and Royal Botanic
Gardens at Kew in London, Vremena Goda Galleries in Moscow, Museo
Nazionale Alinari della Fotografia in Florence, and in Magazzini del
Sale, Venice.
From June to August 2012, Through My
Window (De ma fenêtre) was displayed in a 12,000 square feet (1,100
m2), four-story bespoke exhibition pavilion erected in the Tuileries
Garden, that is administratively attached to The Louvre, in Paris.
English film composer Ilan Eshkeri was commissioned to write a
twelve-part tone poem. Pre-recorded in Abbey Road Studios by the
London Metropolitan Orchestra the 46 minutes composition played
alongside the exhibition, and was later released on Blu-ray Disc. For
the gala dinner in the exhibition pavilion on 25 June 2012 Keith H.
Yoo had commissioned British composer Michael Nyman to write a 26
minutes long piano quintet in four movements titled Through the Only
Window. The work was subsequently recorded by Nyman Quintet in the
Abbey Road Studios, and released on Nyman's record label. Hervé
Barbaret, deputy to former director of The Louvre Henri Loyrette,
disclosed to L'Express in 2014 that "The Louvre did not pay a
penny to organize this event. The artist paid the production entirely
and paid a little more than €500,000 (~US$700.000, ~₩700 million)
to exhibit himself in the Tuileries". Ahae further donated
€1.1 million (~US$1.5 million, ~₩1.5 billion) to the Louvre.
French magazine A nous Paris in its 25
June 2012 edition asked Keith H. Yoo the question: "The
exhibition is a significant cost. Do you have any sponsors?"
To which Keith answered: "No. We are funding everything with
the money from our different companies. We are not interested in
outside pressure and want to enjoy total freedom."
For his second solo exhibition in
France, Fenêtre sur l'extraordinaire (Window on the Extraordinary),
Ahae rented the Orangerie Hall of the Palace of Versailles from 25
June to 9 September 2013. To mark the end of the exhibition, Michael
Nyman was again commissioned, and wrote a 32-minute symphony in four
movements for the occasion, Symphony No. 6 "AHAE",
representing the four seasons in nature as depicted by Ahae. French
composer Nicolas Bacri was commissioned to write a 29-minute
symphonic piece, his opus 130, titled "Ahae's Day (Four
Images for Orchestra)". The London Symphony Orchestra was
hired to premiere both pieces at L'Opéra of the Palace of Versailles
in Paris on 8 September 2013. Both pieces were recorded for a planned
future release. Ahae was the sole patron of the Bosquet du Théâtre
d'Eau (Water Theatre Grove) (fr) currently being recreated with
sculptures by Jean-Michel Othoniel in the area of the Gardens of
Versailles, donating €1.4 million (~US$1.9 million, ~₩1.9
billion). Catherine Pégard, head of the Public Establishment of the
Palace, Museum and National Estate of Versailles who administer the
Palace of Versailles, disclosed that the exhibition was on a
sponsorship basis, saying "The artist himself wanted to rent
the Orangerie. But we never communicate the numbers."
Spurred by investigative reporting initially published by Bernard
Hasquenoph, French Le Monde and British The Times wrote that Ahae
gave €5 million (~US$6.8 million, ~₩6.9 billion) to Versailles.
Financial Times in its review of the
Versailles exhibition wrote:
The scene that is the subject of
Ahae's images looks, on the face of it, pretty unremarkable. A couple
of murky ponds sit in a field which backs on to a fairly
uninteresting looking wood. But such is the focus of Ahae's gaze that
the viewer comes to know the fauna on the patch– from the fierce
great tits who stare defiantly into the camera to the thuggish
magpies and the beleaguered egrets and herons who bow to assaults by
their neighbours like aging professors hounded by skinheads.
— Catherine Milner, The
Extraordinary within the Ordinary, Versailles– review, Financial
Times
The Economist wrote:
At first glance, the view from
Ahae's window appears unimpressive. Yet these images reward patience.
Ahae's forensic attention to detail reveals the stoicism, dignity and
minor dramas of the animals going about their daily business, and
raises these pictures to the realm of poetry.
— C.M., Nature
photography in Versailles: Seoulful visions, The Economist
Parisian newspapers Le Monde and
Libération, several French art magazines, as well as Korean
expatriates in France in an open letter on 12 June to French Minister
of Culture Aurélie Filippetti, Catherine Pégard, president of the
Château de Versailles, Henri Loyrette, ex-president of the Louvre
and co-president of the French-Korean Year, and Bruno Ory-Lavollé,
director of the Forest Festival in Compiègne, have raised their
concerns over French cultural institutions accepting self-financed
exhibitions in return for donations. La Croix on 3 July wrote that
French Foreign Minister Laurent Fabius would write to Versailles to
demand the termination of the Ahae sponsorship there.
Ahae, through his company Ahae Press,
was a patron of the Forest Festival, a classical music festival in
the forests of Compiègne, northern France. His photographs were to
be projected during a gala concert at Théâtre Impérial de
Compiègne on 4 July 2014. The sponsorship commitment was €10,000
(~US$13,640, ~₩13.9 million). Following the open letter on 12 June
from Korean expatriates in France to, among others, Minister of
Culture Aurélie Filippetti and the director of the Forest Festival,
and subsequent talks between the festival and the Ministry of
Culture, Foreign Minister Laurent Fabius on 30 June gave written
notice to the festival suggesting the projection should be renounced
"out of sensitivity and respect for the Korean people
mourning [following the sinking of Sewol], in particular the families
of the young victims, and in the interest of the Festival and of
France"; the projection and the sponsorship was cancelled on
2 July.
An Ahae exhibition produced by Ahae
Press titled Les échos du temps de près et de loin (Echos of Time:
Far and Near) for the opening season of the new Philharmonie de Paris
was scheduled for 5 May to 28 September 2015, and a concert sponsored
by Ahae Press on 15 June 2015 in Philharmonie de Paris featuring
Nyman's Symphony No. 6 "Ahae" and Beethoven's
Symphony No. 6 "Pastorale" was announced; both have been
canceled.
French newspaper La Croix in a comment
to the sinking of the MV Sewol wrote:
This businessman with a murky
past had used his fortune to exhibit at The Louvre. ... The crew [of
the Sewol] was mainly made up of followers of the church of Yoo;
temporary, often renewed and who were unfamiliar with their ship. The
investigation also revealed that the owner had only spent 541,000 won
($521; €400) on crew training, including evacuation drills for its
employees in 2013. Its wealthy owner had other priorities ... he used
his fortune to organize worldwide exhibitions of his landscape
photographs.
— Frédéric Ojardias,
Corée, le scandaleux propriétaire du ferry naufragé, La Croix
France Info commented:
In the Tuileries as at
Versailles Ahae himself had financed his own exhibitions. ... In
2013, the company spent $500 in costs for training their crews, an
amount that pales in comparison to the wealth of the owner of the
shipping company. However, one of the main causes of the tragedy was
precisely the total lack of preparation of the crew in case of
disaster.
— Pierrick de Morel,
Corée du Sud: qui est Yoo Byung-Eun, propriétaire du ferry
naufragé?, France Info
The sinking of the Sewol
The ferry Sewol capsized and sank on 16
April 2014. It was carrying 476 people, mostly secondary school
students from Danwon High School who were traveling from Incheon
towards Jeju. The sinking resulted in 304 deaths, and is the worst
ferry disaster in South Korea since 14 December 1970, when the
sinking of the ferry Namyoung cost 326 people out of 338 their lives.
Sewol was operated by the company Chonghaejin Marine.
Ownership
Before his death, Yoo had widely been
described as "the owner of" or "the de facto
owner of" the sunken ferry Sewol, and was former chairman of
Chonghaejin Marine. Son Byong-ki, Yoo's lawyer, stated on 25 April
that Yoo "has no financial ties to Chonghaejin or its
subsidiaries." A press release from Yoo's U.S. publicist,
Ahae Press Inc., stated that "[Mr. Yoo] does not own any
shares, direct or indirect, of Chonghaejin." Financial
filings confirmed that Yoo had no stake in the shipping company.
Yoo was the head of the family who
partially own Chonghaejin Marine, and is believed to have exercised
influence through a web of company cross-shareholdings. His two sons,
Yoo Dae-kyun (유대균; born
c. 1970), and second son Yoo Hyuk-kee, are controlling the shipping
firm through a majority stake in the investment vehicle I-One-I
Holdings as well as 13 unlisted affiliates which through a tangled
web of ownership structure own each other, a structure prosecutors
describe as pyramid-like, and ultimately is controlled by
individuals― Yoo's two sons and seven of his friends. Chung
Sun-seop, editor of Chaebul.com, a website that analyses South
Korea's chaebol business groups, said that "This kind of
shadow management through his children or close aides is not uncommon
among chaebol companies."
On 23 April investigators of the
Incheon District Prosecutors' Office raided the head office of
Chonghaejin Marine, and some 20 offices of its affiliates, as well as
the office of the Evangelical Baptist Church in Yongsan, central
Seoul. Prosecutors suspected that funds from members of the religious
group had been used in business operations of Chonghaejin Marine and
Yoo Byung-eun. The prosecution found more than 100 bogus companies,
many of them set up and operated by followers of a Yoo's religious
group, had paid Yoo and his two sons at least ₩100 billion
(~US$97.1 million) for their "consulting services," and had
purchased photos taken by Yoo. Yoo's religious group denied
cross-border transactions with affiliates of the ferry operator. The
Prosecution secured video footage of a lecture Yoo delivered to the
sect's believers in April 2010, in which Yoo admitted to have
registered properties under the names of other persons.
A lawyer representing Yoo Dae-kyun and
Yoo Hyuk-kee said on 22 April that "If there is any legal
responsibility, the owners are willing to offer their wealth and
assets to help compensate the victims."
Leadership
Michael Ham, managing director of Ahae
Press and co-director of Evangelical Media Group, in a press release
25 April 2014 said: "Mr. Yoo does not have any involvement in
the management or day-to-day operations of Chonghaejin Marine Co. ...
I know that he has been spending every single day of the past four to
five years focusing on his photography work." Yoo's lawyer
stated that Yoo had not been involved in corporate management since
Semo went bankrupt in 1997.
Investigators obtained evidence
indicating Yoo as the de facto leader of the company. One piece of
evidence was a detailed list of all the company's staff prepared on
15 April 2014, a day before the sinking of the MV Sewol, which named
Yoo as chairman of Chonghaejin Marine with employee number A99001, or
employee No. 1 at the company, which was established in 1999. They
also discovered a pay stub that records a payment of ₩15 million
(~US$14,700) monthly over more than a year. They have also obtained
testimony from others that Yoo was directly involved in managing the
ferry operator.
Sewol was remodeled between October
2012 and February 2013 to increase the number of passenger cabins and
add a fifth floor, mainly used as an exhibition hall for photographs
by Yoo (Ahae). The employee of Chonghaejin who was in charge of the
refitting testified that he carried out the expansion under the
direction of Yoo.
Investigators found that Yoo has
glossed over critical problems with the stability of the refurbished
vessel. According to the prosecution, the regular captain of the
Sewol testified that he had warned Chonghaejin Marine of serious
stability problems with the vessel, and Kim Han-shik, the chief of
Chonghaejin Marine notified Yoo of the risks of overloading it with
freight in January 2014. Kim reportedly pointed out the ferry's
weakened ability to recover left-and-right balance when tilted due to
the extension in the number of cabins, and advised Yoo to sell off
the ferry. Yoo allegedly told them to keep running Sewol as usual and
put up for sale both the sister ship Ohamana and Sewol in March.
On 20 May it was confirmed that the
overloading and remodeling of the ship compromised its ability to
maintain stability at the time of the accident.
Allegations and charges
Based on the evidence, prosecutors
concluded that Yoo was the one who directed operation and execution
of business, and planned to hold Yoo vicariously liable for the acts
of the operator's crew members. Accordingly, the prosecution was
poised to cite "negligent homicide" in its
application of criminal law against Yoo.
Yoo was charged with embezzlement,
breach of trust and tax evasion. He is suspected of embezzling ₩128.9
billion (~US$125.8 million) from his companies, including ₩44.6
billion (~US$43.5 million) transferred overseas illegally, as part of
a scheme to sell his nature photographs to his companies for tens of
millions of won. He also owes an estimated ₩10.1 billion (~US$9.8
million) in taxes for the photos sold. Prosecutors also found
evidence that Yoo's family set up several paper companies with no
consultants, which then collected some ₩20 billion (~US$19 million)
in consulting fees from companies related to Semo Group over the last
few years. They are also looking into circumstantial evidence that
Yoo's family has claimed commission fees of tens of billions of won
from the related companies for the use of trademark rights for names
like Sewol.
On 30 June, the prosecution announced
its intention to indict Yoo, irrespective of whether or not he was
apprehended, citing "homicide by negligence" in the
charges.
Investigation
Yoo made no known public appearances
since the Sewol sank. Within the first week of investigation the
Ministry of Justice banned Yoo, his eldest son Yoo Dae-kyun, and more
than 60 other employees in various companies owned by Yoo or his sons
from leaving South Korea.
Son Byeong-gi, a lawyer representing
both Yoo, Chonghaejin Marine, and I-One-I Holdings, said on 22 April
that "If there is any legal responsibility, the owners are
willing to offer their wealth and assets to help compensate the
victims."
The Park Geun-hye administration
pledged to exercise the right to indemnity against Yoo and
Chonghaejin Marine as soon as the state compensates victims'
families. The combined damages from the sinking of the Sewol are
estimated to reach ₩2 trillion (~US$1.9 billion).
The accumulated value of the assets
owned by Yoo and his family is estimated at over ₩240 billion
(~US$235 million). It includes an estimated ₩129.1 billion
(~US$126.7 million) held by Yoo himself, ₩49.2 billion (~US$48.3
million) by eldest daughter Yoo Som-na, ₩5.6 billion (~US$5.5
million) by eldest son Yoo Dae-kyun, and ₩55.9 billion (~US$54.9
million) by the second son Yoo Hyuk-kee.
Son Byeong-gi representing Yoo told the
Chosun Ilbo on 24 April that reports that Yoo's assets total ₩240
billion were not true, but that Yoo had "voiced his
willingness to donate his entire ₩10 billion (~US$9.8 million)
estate due to his deep sorrow for those who lost their lives aboard
the Sewol.” A prosecution official investigating Yoo's holdings
said there was a "huge gap" between what the former
chairman claimed he was worth and what investigators had found out so
far. Son claimed on 25 April that he had been misunderstood and by
₩10 billion had meant "tens of billions" of won,
and that Yoo was willing to donate his "entire"
assets, whatever their size. Son later resigned as lawyer for the
family on 15 May.
A financier of the Evangelical Baptist
Church of Korea was summoned for questioning on 24 April to trace
deals between the sect and companies run by Yoo and his two sons.
Transcripts of land registers showed that four days later Yoo and his
family signed over some 24 properties worth around ₩27 billion
(~US$26 million) to the Evangelical Baptist Church of Korea on 28 and
29 April. On 13 May, the Incheon District Prosecutors' Office
summoned Yoo to appear for questioning by 16 May, but he failed to
heed the call, and was presumed hiding in the church compound
Geumsuwon south of Seoul. All of Yoo's children and a number of key
suspects had ignored the summons. Yoo failed to appear at a court
hearing on 20 May. On 22 May the Incheon District Court issued an
arrest warrant and Korean authorities offered a ₩50 million
(US$48,800) reward for information leading to the arrest of Yoo. On
25 May the reward was raised tenfold to ₩500 million (US$488,000).
Prosecutors warned on 24 May that
anyone who helps Yoo in hiding faces up to three years in prison.
Four members of Yoo's religious group were arrested 25 May for
assisting Yoo to escape detection by the police. On 26 May Yoo's
religious group, in an apparent move to confuse investigators, said
that Yoo might have returned early in the morning to Geumsuwon, the
church commune in Anseong, Gyeonggi Province. Geumsuwon is known as
the main residence of Yoo. A spokesperson for the sect later
announced that Yoo had not returned, further saying, "We hope
Yoo doesn't get arrested. A 100,000 followers will protect Yoo. Even
if the entire congregation of 100,000 believers is arrested, we won't
hand him over." Lee Jae-ok, another member of Yoo's
religious group, chairman of Yoo's Hemato-Centric Life Foundation,
and one of Yoo's close aides, was arrested on 26 May on charges of
planning Yoo's life as a fugitive and helping him evade detection for
weeks.
President Park Geun-hye during a
Cabinet meeting on 27 May ordered a quick arrest of the fugitive Yoo
saying he and his family "is ridiculing the law and causing
indignation among the people." Beginning 27 May, police
doubled the number of officers deployed for the search for Yoo from
24,000 to almost 50,000.
Yoo Som-na
Yoo's eldest daughter, Yoo Som-na (유섬나;
born 1966), was summoned for questioning multiple times by the
prosecution, but evaded the office's investigation. She headed the
interior design and consulting firm Moreal Design with offices on New
York's Park Avenue and in Seoul, which has done design work for many
of Semo's affiliates, Debauve & Gallais, Hemato-Centric Life
Institute, and NaeClear, and has sponsored Yoo's photographic
exhibitions. On 9 May 2014, police raided the firm's office in
southern Seoul on suspicion it had been involved in forming the
family's slush funds and managing them in overseas accounts. On 11
May, the authorities issued an arrest warrant for Som-na after she
failed to appear for questioning. Som-na had been staying in France
since February 2013 on a temporary residence visa. She is accused of
embezzling ₩8 billion (US$7.8 million) from her affiliates
including Dapanda since 2003, while working as the head of Moreal
Design in Seoul.
On 23 May an Interpol Red Notice was
issued, and the Ministry of Foreign Affairs ordered Som-na to
surrender her passport, while the Ministry of Justice dispatched
local investigators to France to discuss potential extradition.
French law enforcement authorities arrested Som-na under the
international arrest warrant on 27 May in her Paris apartment,
reportedly worth ₩2.5 billion (US$2.44 million), near
Champs-Élysées. The Ministry of Justice said that it would
repatriate Som-na following a repatriation trial in France. She
appeared before a judge on 28 May, who decided against releasing her
on bail. Through her French lawyer, Patrick Maisonneuve, Som-na said
she was innocent of the charges brought against her. An appeals court
on 11 June rejected Som-na's request for bail, citing flight risk. A
renewed request to be released pending the extradition decision 17
September was rejected by a Paris judge on 9 July. She was held at
the Fresnes Prison and was projected to bring her extradition case to
the French Supreme Court, or even to judicial authorities of the
European Union, which could have delayed her repatriation up to one
year.
On 2 June 2017 the appeal on the
extradition order for Yoo Som-na was rejected by the highest
administrative court in France, and on 7 June 2017 she was arrested
by South-Korean officials at the Charles de Gaulle airport, aboard a
plane from Korean Airlines bound for Korea.
Eight aides
During the month of May, numerous
persons were questioned and arrested, among them eight people who
held top positions at subsidiary companies in Yoo's sphere of
influence.
Song Kook-bin (송국빈;
born c. 1952) was summoned for questioning on 30 April. He is CEO
of Chonghaejin affiliate Dapanda, a direct-sales company distributing
health supplements and cosmetics, and previously served as CEO of
I-One-I Holdings. Yoo's first son, Dae-kyun, is the biggest
shareholders of Dapanda. Dapanda holds a 16.2 percent stake in
Chonhaeji, the largest shareholder of Chonghaejin Marine, the
operator of the ferry Sewol. Song was subsequently arrested,
detained, and on 21 May indicted on charges of embezzling company
funds and channeling the money to Yoo and his family, including
suspicions of purchasing photographs taken by Yoo for as much as ₩50
million (~US$60,000) each, dealing significant damage to the company.
Lee Jae-young (이재영;
born c. 1952), Ahae Corp CEO, was arrested on 9 May, on charges of
breach of trust and facilitating financial irregularities by buying
millions of dollars worth of Yoo's photos at prices far higher than
market value, thus funding his photography career.
Lee Gang-se (이강세;
born c. 1941), former Ahae Corp CEO, was questioned in early May
over suspicions of aiding Yoo in the establishment of slush funds.
Lee admitted that his former company, Ahae Corp, had paid bogus
consultation fees to a shell company operated by Yoo, but said these
actions were company custom and had taken place before he became CEO.
Lee allegedly received orders to invest Ahae Corp money in the firm
Ahae Press France, a company established to publish Yoo's
photographs. Lee was arrested on 23 May and charged with extracting
more than ₩1 billion (~US$1 million) from Ahae Corp through an
illegal lending scheme.
Park Seung-il (박승일;
born c. 1959), auditor of I-One-I Holdings and Yoo's close aid was
indicted on 23 May on charges of embezzling ₩12.6 billion (~US$12.4
million) in company money.
Byeon Ki-choon (변기춘;
born 1972), CEO of both Semo's shipbuilding unit Chonhaiji and of
I-One-I Holdings, and Go Chang-hwan (고창환;
born c. 1942), the CEO of Semo, were in early May suspected of
causing tens of billions of won (tens of millions of dollars) in
losses to their companies by paying large sums of company funds to
purchase photographs by Yoo at excessively high prices and for
consulting services from a paper company owned by Yoo's family. They
were indicted on 28 May on charges of inflicting ₩30.1 billion
(~US$29.7 million) worth of losses on their firms to help Yoo's
family create slush funds.
Kim Dong-hwan (김동환;
born c. 1964), auditor of Dapanda and senior executive at I-One-I
Holdings, was arrested in mid May, and indicted on embezzlement
charges on 29 May.
Oh Kyung-seok (오경석;
born c. 1961), CEO of Hemato-Centric Life Institute and in charge
of selling Yoo's photography works, was indicted on embezzlement
charges on 31 May.
The criminal trial of the eight
defendants started at Incheon District Court on 16 June, the eight
being accused of embezzlement, breach of fiduciary duty and other
instances of corruption, with prosecutors alleging that the
defendants inflicted between ₩3 billion (~US$2.94 million) and ₩21
billion (~US$20.58 million) worth of losses on their firms to help
Yoo's family create slush funds. Three of the defendants denied their
charges, the others admitted to irregular intragroup trading, saying
that they acted on the orders of Yoo's eldest son, Dae-kyun, and
Yoo's close aide Kim Phil-bae, who both reportedly fled to the United
States.
Kwon Oh-kyun
Yoo's brother-in-law, Kwon Oh-kyun
(권오균; born c. 1950),
the younger brother to Yoo's wife, Kwon Yun-ja, was arrested at his
home in southern Seoul on charges of negligence on 6 June. Kwon, a
key leader of the Salvation Sect, is CEO of the construction firm
Trigon Korea, a core affiliate of Chonghaejin Marine, and suspected
of embezzling company funds to illicitly transfer to Yoo and Yoo's
children. On 8 June, a court warrant was issued to detain Kwon,
inhibiting he fled the country or destroyed evidence. Kwon became the
first relative of Yoo to be indicted on 24 June. He is accused of
funneling funds of nearly ₩29 billion (~US$28.4 million) into his
business after taking out loans with assets of the Evangelical
Baptist Church as collateral in 2010, according to prosecutors.
Yoo Byung-il
Yoo's older brother, Yoo Byung-il (유병일;
born c. 1939), was the first member of Yoo's family who, on 11 May,
appeared for questioning. Byung-il was the managing director of the
religious facility called Geumsuwon. Prosecutors said they believed
that Byung-il had received consultation fees of ₩2.5 million
(~US$2,400) from Chonghaejin Marine each month, and that they had
testimonies that he had illegally intervened in the company's
management. Byung-il was arrested one month later on 13 June, near
Geumsuwon. The prosecution team requested and was granted a pretrial
detention warrant for Byung-il on 16 June. On 2 July Byung-il was
indicted on embezzlement charges suspected of having received a
combined ₩13 million (~US$129,000) from Chonghaejin Marine as
consulting fees between June 2010 and April 2014.
Shin Myung-hee
Shin Myung-hee (신명희;
born c. 1950), a member of the Evangelical Baptist Church called
"Mother Shin" by devotees of the sect, had been
wanted by law enforcement authorities under suspicion of
masterminding Yoo's escape, and on 13 June turned herself in to
authorities in Suwon, Gyeonggi. Shin was detained and in July
indicted on charges of playing a major role in helping Yoo evade
capture.
Oh Gabriel
An unnamed person acting for Yoo
contacted the Embassy of France in Seoul in late May and asked about
the possibility of Yoo seeking political asylum. The embassy declined
the request due to Yoo's status as a criminal suspect. Local media
outlets said Yoo's middleman also made asylum enquiries at the
embassies of the Philippines, the Czech Republic, and Canada.
Yoo's eldest brother-in-law, Oh Gabriel
(오갑렬; born c. 1955),
married to Yoo's younger sister, Yoo Gyeong-hee (유경희;
born c. 1958), was arrested with his wife on 19 June, allegedly for
aiding Yoo's escape. The arrest came following testimony provided by
two key adherents of the Evangelical Baptist Church that were
arrested earlier in June, saying Oh drove Yoo out of the religious
group's commune, Geumsuwon, on 23 April after police surrounded the
compound. Oh, who served as the Korean ambassador to the Czech
Republic from January 2010 through June 2013, reportedly played a
significant role in garnering support for Yoo's photo exhibitions in
France. Oh is currently under review by the Ministry of Foreign
Affairs's disciplinary committee for allegations that he abused his
authority to help Yoo hold a photo exhibition in France and other
European countries. The Prosecution suspect that Oh contacted the
French Embassy on behalf of Yoo. When questioned, Oh testified that
Yoo's family and followers funded and gave him information about the
authorities' movements. Oh and his wife were released on 26 June
reportedly with the expressed willingness to actively cooperate with
the investigation and mediate the surrender of Yoo, and because under
Korean criminal law family members to a fugitive cannot be punished
for hiding or aiding the suspect.
Kwon Yun-ja
Yoo's wife, Kwon Yun-ja (권윤자;
born c. 1942), was put on the nation's most wanted list in June.
She has been the CEO of a door-to-door sales company, Dalgubeol
(달구벌), in the southern
city of Daegu. Kwon was detained in an apartment in Bundang, Gyeonggi
Province on 21 June and taken in for questioning on charges of
embezzling funds from the Evangelical Baptist Church and her company,
reportedly amounting to more than ₩1 billion (US$979,850) that had
been handed over to her husband and her son to expand their business.
To keep her in custody, the prosecution asked on 23 June the Incheon
District Court to issue an arrest warrant, which was granted on 24
June. On 14 July prosecutors filed embezzlement charges against Kwon.
Yoo Byung-ho
Yoo's younger brother, Yoo Byung-ho
(유병호; born c. 1953),
father-in-law of singer Park Jin-young, was arrested at his residence
in Daegu on 22 June. The Court issued a custody warrant on 24 June.
Byung-ho is suspected of embezzlement, totaling at least ₩1 billion
(~US$1 million), from Chonghaejin Marine's sister firms, and to have
borrowed ₩3 billion (~US$2.8 million) from one of the family
affiliates, and allegedly made members of the religious group pay
back ₩1.5 billion (~US$1.4 million) on his behalf while the
affiliate suffered losses of ₩1.5 billion (~US$1.4 million).
Lee Seok-hwan
On 25 June Lee Seok-hwan (이석환;
born c. 1949), considered Yoo's "right-hand man,"
was arrested in a parking lot in Suwon, south of Seoul, after
avoiding a manhunt for weeks. An influential member of the
Evangelical Baptist Church, Lee is suspected of helping Yoo avoid
arrest. A court-issued warrant on Lee was sought on 27 June.
Ongoing investigation
In mid June 2014, Chonhaiji Co. Ltd., a
ship block maker controlled by Yoo's sons, and the major shareholder
of Chonghaejin Marine Company with 39.4%, lodged its application for
receivership at the Changwon District Court. Chonhaiji had ₩34.8
billion (~US$34.19 million) in outstanding debt to main creditor
Korea Development Bank.
On 27 June the Government of South
Korea had calculated the costs in connection with the sinking of the
ferry Sewol to ₩403.1 billion (~US$397.8 million), and lodged a
claim to any properties held directly or by proxy by Yoo and
Chonghaejin Marine at the Seoul Central District Court to cover
compensation payments for the victims. The Court on 4 July ordered
the sequestration of assets owned by Yoo Byung-eun, four officials of
Chonghaejin Marine, and eight crew members aboard Sewol.
Yoo while on the run purchased around
60,000 square meters (650,000 sq. ft.) of land near a property in
South Jeolla Province where he sought refuge in May, according to
prosecutors. He paid ₩250 million (~US$247,000) and registered it
under the names of the married couple, members of his religious
group, who run a rest stop and restaurant near Suncheon and are
suspected of aiding Yoo's escape from the law. The Incheon District
Court on 2 July ordered in its third decision to temporarily seize an
additional ₩10.2 billion (~US$10 million) worth of assets owned by
Yoo and his family, including the newly acquired property as well as
10 stores in Gangnam District, Seoul, valued at ₩8.5 billion
(~US$8.4 million), an apartment owned by Yoo's son Hyuk-kee valued at
₩1.5 billion (~US$1.48 million), and cameras confiscated from a
restaurant run by his other son Dae-kyun valued at ₩22 million
(~US$21,700).
Yoo Dae-kyun
Yoo's first son, Yoo Dae-kyun, was
involved in the day-to-day operations of Chonghaejin Marine. He was
the biggest shareholder of four affiliates of the family businesses,
including the holding company of the operator of Sewol, I-One-I
Holdings. Prosecutors found evidence proving that Dae-kyun received
monthly wages from affiliates that he did not own shares of. He is
suspected of collecting billions of won in "consulting fees"
from the firms and creating a slush fund. Dae-gyun also registered
the name "Ohamana" for a sister ferry of the Sewol.
Dae-gyun was wanted on a string of corruption charges and
irregularities that are believed to have contributed to the sinking
of the Sewol.
Dae-kyun bought an airplane ticket to
France and was reportedly spotted at Incheon International Airport on
19 April, but didn't board the plane. He was supposed to appear for
questioning at the Incheon District Prosecutors' Office, but failed
to show up. Prosecutors obtained an arrest warrant for Dae-kyun on 13
May, but investigators were unable to find him. He was placed on the
most-wanted list amid fears that he would flee the country. The Court
approved on 20 May a proposal by the Prosecution and the National Tax
Service to place real estate assets worth ₩20 billion (~US$19
million) under confiscation. Among the properties was land in the
Seocho District and Gangnam District of southern Seoul and two
business offices in Gangnam-gu. All properties had been registered in
the name of Yoo Dae-kyun. On 22 May the Korean authorities labeled
Yoo Byung-eun and Yoo Dae-kyun as fugitives, and initially offered a
₩50 million (~US$48,800) reward for Yoo and a ₩30 million
(~US$29,300) reward for Dae-kyun for information leading to their
arrest. On 25 May the rewards were raised to ₩500 million
(~US$488,000) for the older Yoo and to ₩100 million (~US$97,600)
for the son, the largest amount ever offered by an investigative
authority as a reward in South Korea.
Yoo Hyuk-kee
Yoo's second son, Yoo Hyuk-kee,
reportedly was involved in the day-to-day managing of Chonghaejin
Marine. Hyuk-kee, apart from his stake in I-One-I Holdings, owned
some 10 percent stake in Ahae Corp., a paint manufacturing company,
and a stake in Ahae Press Corp. As CEO of Ahae Press Inc. in New
York, Ahae Press France in Paris, and Ahae Press Ltd. UK in London,
he built up his fathers image as a talented photographer, and curated
his exhibitions. Hyuk-kee had been summoned for questioning by 8 May,
but ignored the summonses. On 23 May an Interpol Red Notice was
issued. He is suspected of helping his father establish a slush fund
through paper companies.
Hyuk-kee, who is known outside Korea as
Keith H. Yoo, was based in the U.S. and, according to sources, either
had permanent residence status or held a U.S. citizenship. He left
South Korea for the U.S. shortly after the sinking of the Sewol on 16
April, and attempted to make his way to France but didn't get on his
booked flight. Hyuk-kee and his wife allegedly owned at least three
apartments in Manhattan and near the Arc de Triomphe in Paris, then
estimated to be worth around US$6.2 million (~₩6.3 billion). The
prosecutors asked the United States Department of Homeland Security's
Investigations Directorate to track down real estate and deposits
under the names of the siblings or affiliates of the family business.
Personal life
Yoo was known, due to his
reclusiveness, as "the millionaire with no face." He
married Kwon Yun-ja (Korean: 권윤자;
RR: Gwon Yunja; born c. 1942), the daughter of Kwon Shin-chan, in
1966. He had four children with her: daughter Yoo Sum-na (Korean:
유섬나; RR: Yu Seomna;
born 1966), also known as Ennette Yoo, daughter Yoo Sang-na (Korean:
유상나; RR: Yu Sang-na;
born c. 1968), son Yoo Dae-kyun (Korean: 유대균;
RR: Yu Dae-gyun; born c. 1970), and second son Yoo Hyuk-kee
(Korean: 유혁기; RR: Yu
hyuk-ki; born 1972), also known as Keith H. Yoo.
Death
South Korean authorities initially
offered a ₩50 million (~US$48,800) reward for information leading
to the arrest of Yoo. On 25 May 2014, the reward was raised tenfold
to ₩500 million (~US$488,000).
In June 2014, South Korean police
discovered Yoo's heavily decomposed body in a plum field in Suncheon,
a city about 300 kilometers (190 mi) south of Seoul. Yoo was wearing
an "expensive Italian jacket", and surrounding his
body was "a copy of a book he had written, an empty bottle of
a shark liver oil health tonic manufactured by a Yoo family company
and several empty bottles of alcohol". Initially, the police
believed that the body belonged to a homeless man, but further
investigation in July 2014 based on analysis of DNA, dental, and
fingerprint evidence confirmed that the body was Yoo's.
An investigation into Yoo's cause of
death was inconclusive because the body was too decomposed. According
to Lee Han-Young, the head of the Central Legal Medical Center, no
evidence of alcohol, poison, or external force was found.
Bibliography
Yoo, Byung-eun (2004). God so Loved I
(PDF). New York: Evangelical Media Group. Archived from the original
(PDF) on 27 March 2014.
Yoo, Byung-eun (2004). God so Loved II
(PDF). New York: Evangelical Media Group. Archived from the original
(PDF) on 27 March 2014.
Yoo, Byung-eun (2004). The Anchor of
the Soul (PDF). New York: Evangelical Media Group. Archived from the
original (PDF) on 27 March 2014.
Yoo, B. E. (1 August 2008). While
Reading Through John's Gospel 1. Evangelical Media Group. ISBN
978-1-60668-007-0.
Yoo, B. E. (1 August 2008). While
Reading Through John's Gospel 2. Evangelical Media Group. ISBN
978-1-60668-008-7.
Ahae; Milan Knížák; Keith H. Yoo
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Jardin des Tuileries—musée du Louvre (in French). Editions
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978-80-7437-077-9.
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