Source : Yonhap News
A hearing to decide whether or not the founder of Kakao corp should be detained for alleged manipulation of SM Entertainment stock price.
KIM BEOM SU, the founder of Kakao corp (Kakao talk, kakao Entertainment…) appeared before the South District Court of Seoul, after several interrogations by prosecutors, for his involvement in stock market manipulation concerning shares of SM Entertainment. Indeed the case focuses on the fact that the giant Kakao Corp allegedly “played” with the SM Entertainment share price during a tender that it won in February last year against Hybe .
KIM BEOM SU appeared at the Seoul Southern District Court for the hearing two weeks after prosecutors questioned him over his alleged involvement in stock manipulation involving SM stock. He took no questions from reporters when he arrived at court and headed straight to the courtroom. The court will decide whether or not to issue an arrest warrant against him this evening at the earliest.
With these manipulations, SM Entertainment’s shares were allegedly rigged to raise them above 120,000 won (85 euros), which was the price proposed by Hybe for a public takeover offer. The Prosecutor’s Office suspects Kakao of having purchased SM Entertainment shares on 553 occasions in February 2023 at prices higher than the price offered by Hybe, for a total of 240 billion won, to render Hybe’s offer ineffective. Hybe had acquired 14.8% stakes, with Lee Su Man repurchasing the shares, offering to buy out the shares of small shareholders at a price of 120,000 won, but withdrawing the offer when the prices skyrocketed. These buyouts resulted in the acquisition of 39.87% of the agency’s shares by Kakao and Kakao Entertainment.
For the moment, KIM BEOM SU, who did not answer any questions from journalists, has categorically denied the accusations. KIM BEOM SU currently remains confident in his innocence, having, according to these statements, never requested any manipulation whatsoever. In a previous interrogation KIM BEOM SU said he was aware of the repurchase of SM Entertainment shares, but not how to do it. Prosecutors previously charged Kakao’s chief investment officer, BAE JAE HYUN, and the company itself in connection with the stock price manipulation case.
Journalist: Shawn
Translator: Shawn
Source: Yonhap news, Kakao corp
