Kim Beom-su, the founder of Kakao and the chairman of the Management Innovation Committee, appeared before prosecutors on the 9th in relation to stock manipulation allegations that arose during the management dispute over SM Entertainment.
The Financial Investigation Division 2 of the Seoul Southern District Prosecutors’ Office (Chief Prosecutor Jang Dae-gyu) is summoning Chairman Kim as a suspect on charges of violating the Capital Markets Act.
Prosecutors are investigating allegations that Kakao artificially inflated SM’s stock price to thwart HYBE’s public tender offer during the Kakao-HYBE management dispute over SM in February last year.
They are particularly focusing on whether Chairman Kim was directly involved in this process.
This summons is part of the prosecutors’ supplementary investigation, based on the investigative materials handed over by the Financial Supervisory Service’s Special Judicial Police for Capital Markets, during which several Kakao officials have been summoned for questioning.
Previously, the prosecutors have indicted Bae Jae-hyun, Kakao’s Head of Investment, and recently investigated Hwang Tae-sun, Head of CA Association.
According to the prosecution, Kakao is suspected of mobilizing approximately 240 billion KRW to purchase SM Entertainment shares in the market on February 16-17 and 27-28 last year, making a total of 553 high-priced purchases.
Kakao is also accused of failing to report large stock holdings to financial authorities during this process.
Kakao and HYBE were embroiled in a public tender offer dispute early last year over the acquisition of SM Entertainment.
At that time, HYBE claimed that “abnormal purchase activities occurred,” raising suspicions of stock manipulation.
Subsequently, through public tender offers, Kakao and Kakao Entertainment each acquired 20.76% and 19.11% stakes in SM Entertainment, becoming the largest shareholders.
Meanwhile, the Seoul Southern District Prosecutors’ Office is also conducting a comprehensive investigation into other Kakao-related incidents, including suspicions of overvalued acquisitions of drama production companies by Kakao Entertainment, allegations of call favoritism by Kakao Mobility, and embezzlement and breach of trust allegations involving executives of the Kakao blockchain platform Klaytn’s affiliates.
출처 : 산경투데이(https://www.sankyungtoday.com)
https://www.sankyungtoday.com/news/articleView.html?idxno=46915
Kakao's Kim Beom-su Summoned by Prosecutors as a Suspect in SM Stock Manipulation Allegations
Kim Beom-su, the founder of Kakao and the chairman of the Management Innovation Committee, appeared before prosecutors on the 9th in relation to stock manipula
www.sankyungtoday.com
