Accused of stock manipulation: South Korean tech billionaire acquitted
A year and a half ago, the founder of Kakao Talk was arrested, and he was only released months later. Now, Kim Beom-su has been acquitted.
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A South Korean court has acquitted the founder of the South Korean tech company Kakao of stock manipulation charges, for which the prosecution had sought 15 years in prison for Kim Beom-su. As the Korea Times now reports, the court in the capital Seoul stated that while the stock purchase in question did influence the price of the shares, it could not be considered manipulation. Given the timing, it could not be definitively concluded that the purchase was intended to fix a specific price. Furthermore, the associated takeover was not essential for Kakao. Kim has accordingly thanked the court.
15 years in prison sought
The proceedings concerned a bidding war in the context of the takeover of the Korean music label SM Entertainment. Kim and his company were accused of using a large stock purchase to deliberately influence share prices weeks before the Kakao group itself finally became the main shareholder in SM Entertainment. The entrepreneur was arrested in a high-profile manner in the summer of 2024. The district court responsible for the arrest warrant feared that he might flee or destroy potential evidence. He was only released months later on bail for health reasons. During the proceedings, the prosecution sought an unusually long prison sentence. Instead, the court acquitted him.
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With his internet empire, Kakao, founded in 2010, Kim Beom-su is considered one of the most successful and wealthiest entrepreneurs in the country. His corporate group is primarily known for the messenger service KakaoTalk, by far the most popular instant messenger there, but also used in many other services. When it failed three years ago after a fire in a data center, it caused nationwide chaos, and even the president demanded consequences. According to the Korea Times, after his arrest, Kim Beom-su withdrew from the management of the giant group, but he still holds a quarter of the shares, making him the largest shareholder.
(mho)
