[Alpha Biz=(Chicago) Reporter Paul Lee] The capital market special judicial police of the Financial Supervisory Service recently summoned Song Ji-ho, head of Kakao Krust Universe, as a witness, while investigating former Kakao Chairman Kim Bum-soo's alleged manipulation of the market price of SM Entertainment.

However, Song's lawyer submitted a confirmation of his absence on the 9th.

The special judicial police appear to be stepping up pressure on former chairman Kim.

Earlier, the special judicial police sent three executives of Kakao and Kakao Entertainment to the prosecution last month, but former chairman Kim was excluded from the list and is still under investigation.

They are suspected of raising the stock price of SM Entertainment above the public purchase price of Hive by investing about 240 billion won in February with the aim of obstructing the public purchase of Hive, a rival in the bid to take over management control of SM Entertainment. Song, who will be summoned as a witness this time, is a close aide to former chairman Kim. He has been in charge of the Chief Financial Officer (CFO) since the beginning of Kakao.

CEO Song headed "Pass Mobile," a subsidiary that Kakao created in 2015 when it ambitiously entered Indonesia.

 

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