The drama is the latest step in what appears to be the final days in power for President Park Geun-hye. She faces an impeachment vote Friday.
On live TV, lawmakers in a hearing room jammed with media first assembled and then sent away about 20 security officers with orders demanding that, Choi Soon-sil, who is accused of using her ties to Park to control government affairs and extort companies, and 10 other witnesses attend the hearing.
Choi, now jailed at a detention center near Seoul, had earlier cited a panic disorder as the reason that she couldn't testify on Wednesday, according one of the lawmakers at the hearing.
Choi and two of Park's ex-presidential advisers have been indicted. One of the two ex-aides allegedly pressured big companies to donate millions of dollars to foundations controlled by Choi, while the other is accused of passing confidential government documents to Choi. Both men refused to testify Wednesday.
With many key witnesses absent, lawmakers grilled Kim about a 2014 deadly ferry disaster that has long dogged Park's government over what's widely believed to have been a botched rescue effort.
The sinking killed more than 300 people, mostly high school students on a field trip.
Opposition lawmaker Kim Kyung-jin screamed as he grilled Kim about an allegation that he told junior presidential secretaries that efforts to recover bodies from the wreckage should be stopped because it would be a burden to the government.
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