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Appellate court rejects gov't's request to seize funds of late Sewol owner's aide

Published: 07 Dec. 2025, 12:51

The picture shows Yoo Byung-eun, the former chairman of Semo Group, involved in the tragic sinking of the Sewol ferry in 2014. [JOONGANG ILBO]

The government has lost a civil appeals case seeking to seize assets allegedly held under a borrowed name by the late businessperson blamed for the 2014 sinking of the Sewol ferry to recover costs related to the disaster, legal representatives said Saturday.

The Seoul High Court on Oct. 24 upheld a lower court ruling and rejected the government's request to transfer stocks owned by Kim Hye-kyung, the former head of Korea Pharmaceuticals, according to the representatives.

Kim is considered a close aide to Yoo Byung-eun, the former chairman of Semo Group, and is suspected of managing Yoo's hidden assets and slush funds.

"Even after reviewing additional evidence submitted in the appeals trial, the factual findings and judgments of the lower court are deemed justified," the appellate court said in a ruling.

In 2017, the government filed a civil lawsuit against Kim to surrender such assets to cover costs incurred from the Sewol ferry disaster, following the passage of a special law to compensate victims.

The total value of the assets the government sought to seize is estimated at around 12 billion won ($810 million), including 2,000 shares of Chonghaejin Marine Co., the operator of the sunken Sewol ferry.

The government claimed Kim managed various companies and unlisted stocks owned by Yoo, citing testimony from employees at Semo group affiliates. In contrast, Kim had argued she had acquired such assets with her own funds.

The lower court had rejected the government's claim, saying it was largely based on "speculation" and "unclear statements."

Yonhap