In the fresh probe into the high-profile case, prosecutors identified suspected misappropriation of company funds and fraud by Yoon Jung-cheon, 58, while he was heading a construction firm between November 2017 and May last year, according to the prosecution.
The prosecution is mulling whether to seek an arrest warrant for Yoon.
The apprehension is expected to boost momentum for the investigation into allegations that Yoon sought business favors from government officials and other influential figures by providing them sexual services.
Kim, who retired from public service in March 2013, is suspected of having received sexual services and having raped women at a drunken orgy hosted by Yoon at his villa in Wonju, Gangwon Province, between 2006 and 2007.
A video was revealed in which men partook in a sex party with about 30 women. Kim is believed to be one of the men.
Yoon said that the man in the video looked “similar” to the ex-vice minister during an interview with TV network MBC.
Kim has denied all allegations and maintains he had not known Yoon.
Kim is expected to be summoned in the near future.
The prosecution launched a special investigation team of 13 prosecutors in March amid growing public calls for a reinvestigation into the case.
Prosecutors investigated the allegations twice -- in 2013 and 2014 -- but did not file any charges against Kim, citing lack of evidence.
By Ock Hyun-ju (email@example.com)