(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Jisun] Kim Beom-soo, chairman of Kakao, strongly denied allegations related to market manipulation in connection with the acquisition of SM Entertainment. According to Kakao on the 18th, Chairman Kim expressed regret over the situation during an interim group advisory council meeting, stating, "It is unfortunate that such allegations have arisen at a time when our group members are working together for corporate reform and AI-driven innovation."

Kim emphasized, "I cannot provide detailed explanations due to the ongoing investigation, but the allegations against me are not true. I have never instructed or condoned any illegal activities, and I believe the truth will ultimately be revealed."

He further pledged, "In difficult times like these, we should strive harder to fulfill our duties as Korea's leading tech company, focusing on reform that meets the expectations of the public and enhances shareholder value. I will do my best in collaboration with all stakeholders for mutual growth."

The previous day, the Seoul Southern District Prosecutors' Office's Financial Investigation Department II (headed by Prosecutor Jang Dae-gyu) requested an arrest warrant for Kim on charges of violating the Capital Markets Act. The allegations suggest that Kim manipulated stock prices to prevent a public takeover bid by Hive, setting and fixing the stock price above Hive's bid of 120,000 won during the acquisition process of SM Entertainment in February last year.

The decision on Kim's arrest will be determined after a substantive review of the warrant, scheduled for the afternoon of the 22nd at the Seoul Southern District Court.

 

 

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