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[Alpha Biz=(Chicago) Reporter Paul Lee] Kakao founder Kim Beom-soo, former chairman of Kakao, attended the Financial Supervisory Service on the 23rd to be investigated over allegations of SM Entertainment's manipulation of stock prices.
On the same day, the Financial Supervisory Service's special judicial police on capital markets reportedly questioned Kim on how far he was involved in the alleged manipulation of SM market prices. Former chairman Kim and other Kakao executives are under investigation for allegedly manipulating SM stock prices to gain the upper hand in the race to acquire SM in February. They are suspected of artificially raising SM's stock price by investing 240 billion won to prevent the tender purchase of their rival Hive at the time of the acquisition of SM.
If a Kakao corporation is sentenced to more than a fine on suspicion of SM market manipulation, Kakao may lose its status as a major shareholder of Kakao Bank, an Internet-only bank. Kakao is a major shareholder with a 27.17% stake in Kakao Bank.
Financial and legal circles believe that the prosecution is likely to hand over the Kakao corporation to trial in accordance with the joint punishment regulations.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
