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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Jisun] Kim Beom-su, the founder of Kakao, will face his first trial on September 11, following his indictment on charges of stock manipulation related to the acquisition of SM Entertainment.
According to the Seoul Southern District Court's criminal division, the initial court session will involve Kim Beom-su, along with former Kakao CEO Hong Eon-taek, former Kakao Entertainment CEO Kim Sung-soo, and Kakao's investment strategy head Kang Ho-jung. The court will review allegations that these individuals engaged in market manipulation to obstruct rival Hive's public takeover offer and artificially inflate SM Entertainment’s stock price.
The prosecution argues that Kakao aimed to keep SM Entertainment’s stock price above Hive’s purchase price of 120,000 won to prevent Hive from acquiring the company, eventually leading to Kakao’s successful acquisition. Kim Beom-su, as the highest decision-maker, is suspected of having approved the stock manipulation plans.
Kim was arrested and detained last month after the court accepted the prosecution’s request for a detention warrant, citing risks of evidence destruction and flight.
Kakao has stated that it will diligently clarify the facts during the trial and will strive to minimize the impact on its operations through efforts led by the company’s new representatives.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
