Kakao founder acquitted of stock manipulation charges
A Seoul court cleared Kakao Corp founder Kim Beom-su on Tuesday of stock manipulation charges related to the 2023 bidding contest for SM Entertainment. Prosecutors failed to prove the tech billionaire orchestrated a scheme to inflate share prices when rival HYBE attempted to acquire the K-pop company. The court dismissed claims that Kakao funneled $172 million through 300 transactions to drive up SM stock values.
Authorities sought 15 years in prison and a $350,000 fine for Kim after his July 2024 arrest. SM shares briefly doubled from 75,000 to 147,000 Korean won before dropping as Kakao secured a 39.9 percent stake. The verdict protects the messaging platform operator from forced divestment of its 27 percent KakaoBank holdings under financial crime statutes.
