본문 바로가기
ENGLISH NEWS

Kakao founder Kim Beom-soo arrested on charges of manipulating SM Entertainment'

by 산경투데이 2024. 7. 25.
반응형



Kim Beom-soo, the founder and head of the Management Innovation Committee of Kakao, has been arrested by prosecutors on charges of market manipulation during the acquisition process of SM Entertainment.

Judge Han Jeong-seok of the Seoul Southern District Court, who is in charge of issuing warrants, accepted the prosecution's request for an arrest warrant on charges of violating the Capital Markets Act.

Kim was arrested due to concerns over evidence destruction and flight risk.

Prosecutors allege that Kim artificially manipulated SM Entertainment's stock prices to interfere with the public tender offer by rival company HYBE during the acquisition process in February last year.

Kim is suspected of attempting to set and fix SM Entertainment's stock price higher than HYBE's public tender offer price of 120,000 won.

According to the prosecution's investigation, Kakao, along with private equity fund manager One Asia Partners, invested about 240 billion won and made 553 high-priced purchases of SM Entertainment stocks from February 16 to 17 and from February 27 to 28 last year.

Prosecutors believe Kim was briefed on and approved this plan in advance.

Meanwhile, the Financial Supervisory Service's special judicial police referred Kim and Kakao executives to the prosecution in October and November last year with an opinion of indictment.

Subsequently, the prosecution executed a search and seizure at Kakao's Pangyo office in Seongnam, Gyeonggi Province, summoned Kim for a private investigation, and then requested an arrest warrant.

Upon his arrest, Kim stated, "The charges against me are not true," and "I have never directed or condoned any illegal activities." He claimed his innocence at Kakao's temporary group meeting, adding, "The truth will eventually come to light."

In connection with this case, Kakao Corporation, Bae Jae-hyun, Kakao's Chief Investment Officer, and Ji Mo, the head of One Asia Partners, are also on trial and currently released on bail.

https://www.sankyungtoday.com/news/articleView.html?idxno=47283

Kakao founder Kim Beom-soo arrested on charges of manipulating SM Entertainment's stock price

Kim Beom-soo, the founder and head of the Management Innovation Committee of Kakao, has been arrested by prosecutors on charges of market manipulation during t

www.sankyungtoday.com

반응형