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South Korean Prosecutors Seek 15-Year Sentence for Kakao Founder Kim Beom-su in SM Stock Manipulation Case
South Korean prosecutors told an appellate court they are seeking a 15-year prison sentence for Kim Beom-su, founder of Kakao Corp, on charges of stock price manipulation tied to the acquisition of the prominent K-pop agency SM Entertainment. In their closing arguments, prosecutors also asked the court to fine Kim 510 million won, or about 377,000 US dollars, and urged the appellate court to overturn last year's lower court ruling, which had acquitted Kim of the charges. The appellate court is scheduled to deliver its verdict at a later date. Kim Beom-su, also known as Brian Kim, a South Korean technology billionaire, was arrested in July 2024 on allegations tied to inflating SM Entertainment's share price in early 2023, driving the market price above the tender offer that rival Hybe made to ordinary shareholders in order to thwart Hybe's takeover bid. Kim was released on bail in October 2024. Kim has denied all the charges, saying through a company representative that he never ordered, knew of, or condoned any illegal acts. Meanwhile, Kakao's shares closed down 2.05% in trading on the Seoul stock exchange the same day.
352820.KO · Competition · Positive Kakao founder faces a 15-year sentence bid over allegedly inflating SM's price to thwart Hybe's takeover bid, a legal setback for a rival in the SM Entertainment battle.