(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] The Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office (led by Chief Prosecutor Jang Dae-kyu) summoned Kakao founder Kim Bum-soo as a suspect (on charges of violating the Capital Markets Act) on the 9th to investigate allegations of stock price manipulation involving SM Entertainment. This marks approximately eight months since Kim was referred to the prosecution in November last year.

In February of last year, Kakao competed with HYBE for management control of SM Entertainment. During this process, Kakao allegedly colluded with private equity firm One Asia Partners to manipulate SM's stock price to exceed HYBE's public tender offer price of 120,000 KRW. Kakao is also accused of failing to report its acquisition of more than 5% of SM's shares to financial authorities.

 

 

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