The South Korean court has approved the arrest warrant for Brian Kim, also known as Kim Beom-soo, the founder of Kakao, on charges of stock manipulation. This case stems from Kakao’s acquisition of shares in the entertainment company SM Entertainment in 2023 to prevent rival company Hybe (the agency of BTS) from acquiring competing shares. Currently, Kakao owns a 40.3% stake in SM, while Hybe owns a 12.6% stake.
Kim Beom-soo is accused of intentionally manipulating the stock price of SM to block Hybe from acquiring shares. He has denied these charges, leading the investigative agency to file for a warrant to prevent him from destroying evidence. Previously, the South Korean investigative agency had charged Bae Jae-hyun, Kakao’s investment head, and the company itself. This time, the focus is on Kim Beom-soo.
Source: CNBC, Nikkei, Yahoo Finance, Yonhap
TLDR: South Korean court approves arrest warrant for Kakao founder Brian Kim, alleging stock manipulation to block rival Hybe from acquiring shares in SM Entertainment.
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