Kakao founder Kim Beom-su cleared of stock manipulation
A South Korean court acquitted Kakao Corp founder Kim Beom-su of stock manipulation charges on Tuesday. The billionaire entrepreneur faced accusations of artificially inflating SM Entertainment share prices in 2023 to prevent competitor Hybe from purchasing the company.
Prosecutors requested a 15-year prison sentence and $350,000 fine in August. Kim spent three months in custody after his July arrest before gaining bail in October 2024. He expressed gratitude for the verdict and hoped it would help restore the company’s reputation.
The 24 percent shareholder built Kakao into a $66 billion conglomerate after launching messaging platform KakaoTalk in 2010. Nearly 50 million South Koreans use the service, which has expanded into gaming, commerce, finance, and transportation. Company shares jumped 5 percent following the announcement.
A conviction would have threatened Kim’s control of KakaoBank under regulations barring major bank ownership by financial crime offenders. Analysts expect prosecutors will appeal to the Supreme Court despite the dismissal of all charges against the tech executive.
