'Management Dispute' Dismissed Arrest Warrant for Bodyfriend Founder and Private Equity Majority Shareholder

Both the founder and largest shareholders of Bodyfriend, which is in a management dispute, have avoided arrest.

The Seoul Central District Court today (the 5th) rejected arrest warrants for Kang Woong-chul, former chairman of the Board of Directors of Bodyfriend, Han, the largest shareholder of Han & Brothers, and Yang, who served as Chief Financial Officer of Bodyfriend.

The court explained that it is difficult to admit the reason and necessity of Kang's arrest, such as the factual and legal aspects of whether major crimes are established.

Former chairman Kang is accused of embezzling 6 billion won in job invention compensation and causing damage to the company, and was sued by Han & Brothers last year on charges of fraudulent use of corporate cards.

In response, former chairman Kang reportedly filed a lawsuit against Han and Yang on charges of misappropriating company money, including allegations that he paid for accommodation in luxury hotel suites with a corporate card.

In July last year, private equity firm Hahn & Brothers acquired Bodyfriend, which has since been in dispute between the two sides over management rights.