A South Korean billionaire and technology executive was detained on Tuesday for allegedly manipulating the stock price of a prominent K-pop agency during a transaction last year.
Kim Beom-su, the founder of Kakao, has not yet been formally charged, according to reports. The Seoul Southern District Court has issued an arrest warrant for him, citing concerns that he might leave the country or destroy evidence.
Kim stated during a recent staff meeting at Kakao, “The allegations are not true. I have never instructed or condoned any illegal acts.” The company expressed that his arrest was “unfortunate.”
The 58-year-old entrepreneur reportedly manipulated the stock of SM Entertainment in an effort to thwart Hybe, another leading K-pop agency, from acquiring it. SM Entertainment and Hybe are major players in South Korea’s K-pop industry, representing popular groups Aespa and BTS, respectively.
Related Recipes
MercadoLibre Revenue Beat Masks EPS Miss as Investors Focus on Profitability Outlook Next Quarter
Coinbase bets on AI agents like self-driving cars as it cuts 700 jobs after quarterly loss
T. Rowe Price Declares $1.34/Share Quarterly Dividend as AUM Falls to $1.71T on March Outflows (Record Date June 12, Payout June 26)
Humana Lowers 2026 Earnings Outlook as Medicare Advantage Scrutiny Tightens, Completes Share Buyback
Kakao eventually took over SM Entertainment. Last year, Kakao’s chief investment officer, Bae Jae-hyun, was also indicted on charges of stock manipulation.
Kim, who established Kakao in 2010, holds about a 24% stake in the company, which employed over 10,000 individuals in 2020. At one stage, he was considered South Korea’s richest person, with an estimated net worth exceeding $13 billion.
Trending Now
Valorant: Riot Temporarily Removes Neon from PC Queues to Patch Fast Lane Exploit Ahead of Patch 12.09
Kathleen Miller Named Nevada’s 2026 Mother of Achievement as Living Grace Homes Expands to Help Pregnant Teens in Las Vegas
DC Lottery May 8 Draws: Mega Millions Numbers 37-47-49-51-58 (Mega Ball 16) and Daily DC Game Results
Olivia Munn reveals on-set clash over female agency that briefly halted production, underscoring gender tensions in Hollywood
Following the announcement of Kim’s arrest, Kakao’s stock fell by 5%. Woochan Kim, a professor at Korea University Business School, suggested that this situation could represent Kakao’s “biggest crisis,” emphasizing that it would now be essential for remaining executives to demonstrate that the company can continue to operate effectively without its founder.
Continue Reading
