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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, August 29, 2025 — Prosecutors have demanded a 15-year prison sentence and a fine of KRW 500 million for Kim Beom-soo, head of Kakao’s Future Initiative Center, over allegations that he conspired to manipulate the stock price of SM Entertainment during its high-profile takeover battle.
During the trial held at the Seoul Southern District Court on August 29, prosecutors argued that Kim, as the de facto leader and ultimate decision-maker of Kakao Group, approved strategies to block HYBE’s tender offer for SM Entertainment by secretly accumulating shares on the open market, thereby engaging in price manipulation in violation of the Capital Markets Act.
Prosecutors said: “The defendant, despite being informed of lawful competitive options, ordered that SM be taken ‘peacefully’ and ultimately approved Kakao’s plan to counter HYBE’s tender offer through market purchases. As the largest shareholder of Kakao Group, he stood to benefit most from the gains and bears a high level of culpability.”
In his final statement, Kim denied all charges, saying: “At no point in managing Kakao Group did I ever seek to pursue matters through illegal or improper means.”
Additional sentences sought by prosecutors include:
Bae Jae-hyun, former head of Kakao’s investment unit: 12 years in prison + KRW 500 million fine
Kim Sung-soo, CEO of Kakao Entertainment: 9 years in prison + KRW 500 million fine
Hong Eun-taek, former CEO of Kakao, and Kang Ho-joong, head of investment strategy: 7 years each + KRW 500 million fines
Kakao Corp. and Kakao Entertainment: KRW 500 million fines each
Ji Chang-bae, CEO of One Asia Partners (alleged co-conspirator): 10 years in prison + KRW 500 million fine
Kim Tae-young, executive at One Asia Partners: 7 years in prison + KRW 500 million fine
The case marks one of the most significant prosecutions under Korea’s capital markets law, highlighting regulatory scrutiny over corporate governance and fair competition in high-profile M&A battles.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
