The 72-year old was arrested shortly after the Seoul District Court approved his pre-trial detention.
Last week, the IOC suspended Mr Kim - on the recommendation of its ethics commission - until investigations by prosecutors in South Korea and by the IOC were completed.
The charges against Kim are believed to include accepting bribes from businessmen who wanted a place on the Korean Olympic Committee; embezzling funds from the World Taekwondo Federation; and using unauthorised funds to maintain sporting links with North Korea.
Kim was also questioned over the presence of more than $1m found at his home.
His office said in a statement after the arrest: "There is no right to bail in Korea so he will have to stay in detention until the hearing. He will be permitted only one visit per day to meet a maximum of three visitors and all the conversations will be stenographed."
Kim Un-yong, the International Olympic Committee vice president currently serving a suspension from duty, has been arrested on corruption charges in South Korea.
