Kakao’s Kim Beom-su faces arrest warrant over alleged SM Entertainment stock manipulation
![Kakao founder Kim Beom-su [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2024/07/17/be2bc84d-c612-4216-a482-bdd1a8a8ab7c.jpg)
Kakao founder Kim Beom-su [NEWS1]
Prosecutors have filed an arrest warrant for Kakao founder Kim Beom-su, alleging that he manipulated SM Entertainment’s stock last March when Kakao became the largest shareholder of the K-pop agency by acquiring a 39.87 percent stake.
The move comes just a week after Kim was summoned by prosecutors on July 9 for further investigation into these allegations.
Kim is suspected of violating the Capital Markets Act by allegedly colluding with the private equity fund management company OneAsia Partners to manipulate SM Entertainment’s stock price.
The two parties are speculated to have artificially injected 240 billion won ($173 million) into the market to drive SM shares above 120,000 won, thereby obstructing HYBE’s attempt to acquire the stock.
The Financial Supervisory Service had previously raided Kim's office and Kakao’s Pangyo headquarters last November in connection with the same suspicion.
BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]
with the Korea JoongAng Daily
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