Grapevine

By Al Jazeera
Jul 24, 2024

Founder of South Korea’s Kakao arrested over alleged stock price rigging

Kim Beom-su is accused of conspiring to inflate SM Entertainment’s stock price to prevent takeover by rival agency.

The founder of South Korea’s Kakao Corp has been arrested on suspicion of rigging the tech giant’s stock price during its acquisition of K-pop juggernaut SM Entertainment.

Seoul Southern District Court issued the arrest warrant for Kim Beom-su on Tuesday, citing the possibility he could try to flee or destroy evidence.

Hybe withdrew an offer to buy a 14.8 percent stake in SM Entertainment after the company’s stock price soared, allowing Kakao and its subsidiary to secure a nearly 40 percent stake in the K-pop agency.