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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] Brian Kim(Kim Beom-su), Chairman of Kakao’s Management Innovation Committee and the founder of Kakao, was arrested on July 23rd over allegations of stock manipulation during the acquisition of SM Entertainment.
Judge Han Jung-seok of the Seoul Southern District Court, after presiding over a pre-trial detention hearing the previous day, issued the arrest warrant for Kim early in the morning, citing concerns about evidence destruction and the risk of flight.
According to the prosecution, Kim is accused of manipulating SM Entertainment’s stock price last February to hinder a rival tender offer from HYBE. The intention was to keep SM Entertainment’s stock price above HYBE’s offer price of 120,000 won per share.
The prosecution’s investigation revealed that Kakao, in collaboration with private equity firm One Asia Partners, allegedly spent approximately 240 billion won over four days—February 16-17 and 27-28—executing 553 high-priced purchases of SM Entertainment shares. However, the arrest warrant for Kim specifically mentions stock manipulation charges only for February 28.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
