Seoul – In a high‑profile corporate case, South Korean prosecutors have filed a request with an appeals court to sentence Kakao Corp founder Kim Beom‑su to 15 years in prison. The request also includes a fine of 510 million won (about $377,000). The charges stem from an alleged stock‑manipulation scheme tied to Kakao’s attempted acquisition of K‑pop agency SM Entertainment.
Background of the case
Kim, also known as Brian Kim, was arrested in July 2024 after investigators said he helped manipulate SM Entertainment’s share price in 2023. The alleged goal was to prevent rival Hybe Corp from purchasing the entertainment company. Kim was released on bail in October 2024 and has consistently denied any wrongdoing, stating that he never ordered or tolerated illegal activity.
Prosecutors’ request
According to Yonhap News Agency, prosecutors are seeking to overturn a lower‑court ruling from last year that cleared Kim of the charges. The appeals court is expected to issue its decision at a later date. Kakao Corp itself declined to comment on the prosecutors’ request.
Impact on Kakao and the market
Kakao, the South Korean tech giant best known for its messaging app KakaoTalk, has seen its shares dip modestly following the news. At 05:24 GMT, Kakao shares fell 1.3% on the Seoul exchange. The case underscores the heightened scrutiny Korean regulators are applying to large technology firms and their corporate governance practices.
Legal context
South Korea has been tightening enforcement against market manipulation and unfair trade practices, especially in the fast‑growing entertainment and technology sectors. Prosecutors argue that the alleged manipulation distorted market prices and harmed shareholders, violating the country’s securities laws.
Kim’s legacy
Kim rose to prominence after launching KakaoTalk in 2010 and expanding the platform into a broad ecosystem of services, including mobile payments, gaming, and media. His entrepreneurial success has made him one of the most recognizable figures in South Korea’s digital economy.
What comes next?
The appeals court’s ruling will determine whether Kim faces a lengthy prison term and a substantial fine. The outcome could set a precedent for how aggressively Korean authorities pursue alleged financial misconduct by high‑profile business leaders.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
