Kakao Founder Kim Beom-su Questioned in Stock Manipulation Probe

Prosecutors in South Korea are investigating Kakao Corp. founder Kim Beom-su as part of an ongoing probe into alleged stock price manipulation connected to the firm's takeover of K-pop powerhouse SM Entertainment . Kim is being questioned regarding suspicions that Kakao and its executives manipulated SM stock prices during a bidding war with Hybe, the parent company of BTS' management agency, over the acquisition of SM Entertainment.

The Seoul Central District Prosecutors Office has already indicted Kakao's chief investment officer, Bae Jae-hyun, on charges of stock price manipulation. Bae has been placed under physical detention as the investigation continues. Prosecutors are now looking into whether Kim and other Kakao executives were also involved in the alleged manipulation of SM stock prices.

A spokesperson for the prosecution office stated, "Kim Beom-su is a suspect in the SM stock price manipulation case, and questioning him is necessary in connection with the ongoing investigation." However, the spokesperson added that it is too early to say when the questioning of Kim would take place.

The investigation centers on the intense bidding war that took place between Kakao and Hybe earlier this year over the acquisition of SM Entertainment, one of the largest entertainment companies in South Korea. SM is known for managing popular K-pop acts such as EXO, Red Velvet, and NCT.

Why this matters:The investigation into alleged stock price manipulation by Kakao executives has significant implications for the Korean entertainment industry and the broader business terrain. As a major player in the tech and entertainment sectors, Kakao's involvement in such a high-profile case could have far-reaching consequences for the company and its leadership.

The prosecution office has not provided a specific timeline for when Kim Beom-su will be questioned, but the investigation is expected to continue in the coming weeks. The outcome of this probe could have a significant impact on Kakao's reputation and future business dealings, as well as the K-pop industry as a whole.

Key Takeaways

• Prosecutors investigating Kakao founder Kim Beom-su for alleged stock price manipulation
• Kakao's CIO Bae Jae-hyun indicted, under detention for stock price manipulation
• Probe centers on Kakao's bidding war with Hybe over acquisition of SM Entertainment
• Investigation could have significant implications for Kakao and the K-pop industry
• No timeline provided for Kim's questioning, but probe expected to continue