KIM BEOM SU
The first-instance verdict concerning KIM BEOM SU, founder of Kakao and chairman of the management reform committee, prosecuted for stock manipulation and other offenses related to SM Entertainment shares, will be delivered.
On October 21, the 15th Criminal Division of the Seoul Southern District Court (presided over by Judge Yang Hwan Seung) will hold the judgment hearing for KIM BEOM SU, indicted for violating the Capital Markets Act.
KIM BEOM SU appeared at the court wearing a suit and did not answer questions from reporters.
He is accused of manipulating the stock price in February 2023 during the acquisition of SM Entertainment, setting the price above the public offering price to prevent the competing company HYBE from completing its public takeover bid.
Arrested and indicted in July 2024, KIM BEOM SU later applied for bail, obtaining conditional release 101 days after his incarceration. The conditions set by the court included submission of a written pledge, residence restrictions, a deposit of 300 million won, obligation to appear for summons, prior notification to the court for trips abroad or travels longer than three days, and prohibition of contact with witnesses or related parties.
During the indictment hearing in August, the prosecutor requested a 15-year prison sentence and a fine of 500 million won for KIM BEOM SU. For Bae Jae Hyun, former investment director of Kakao prosecuted for the same acts, the prosecutor requested 12 years in prison and a fine of 500 million won, while the companies Kakao and Kakao Entertainment were targeted with a request for fines of 500 million won each.
The court had then stated: “The central issue in this case concerns the methods and limits permitted for stock purchases during the public offering period. It is extremely difficult to reach a definitive conclusion. We will judge this case according to impartial criteria and viewpoint, without favoring any side.”
Journalist: Shawn
Translator: Shawn
Source: Star News
