[Alpha Biz=(Chicago) Reporter Kim Jisun] Financial authorities have launched an investigation into Bae Jae-hyun, head of Kakao's community investment division.

According to the industry today (18th), the Capital Market Special Judicial Police of the Financial Supervisory Service, which is investigating the suspicion of SM Entertainment's stock price manipulation, summoned CEO Bae for questioning on the 14th.

CEO Bae is known to have played a leading role in Kakao's acquisition of SM Entertainment.

Earlier last month, financial authorities raided the office of Kakao founder Kim Beom-soo, head of the Future Initiative Center, in Pangyo, Seongnam, Gyeonggi Province.

In April, Hive raised suspicions that Kakao manipulated the market price in the process of buying a stake in SM Entertainment, and the FSS launched a forced investigation by seizing and searching Kakao and SM Entertainment.

HYBE filed a petition with the Financial Supervisory Service on February 16, during the SM Entertainment stock open purchase period, claiming that an abnormal purchase of 2.9% of the total number of SM-issued shares occurred at the Pangyo branch of IBK Investment & Securities.

The Financial Supervisory Service is looking into whether Kakao is suspected of violating the Capital Markets Act by artificially engaging in stock prices in the process of HYBE's public purchase of SM Entertainment shares.

 

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