Founder of South Korea's Kakao arrested for suspected stock manipulation

SEOUL — South Korean authorities arrested Kim Beom-su, the billionaire founder of tech giant Kakao Corp on Tuesday (July 23), on accusations of manipulating stocks during the acquisition of a K-Pop agency last year. It is the latest legal twist for Kakao, which runs South Korea's largest chat app, after the company and another executive went on trial last year, accused of wrongdoing during the acquisition. Founder Kim, also known as Brian Kim, is seen as a visionary in South Korea's digital industry for building from the ground up the Kakao group, worth 86 trillion won ($83.38 billion) by assets, since the chat app launched in 2010. Any case against him could jeopardise Kakao's investments into artificial intelligence as well as its plans to expand overseas, industry experts said. Prosecutors say Kim was involved in manipulating the stock price of SM Entertainment in February last year to hinder a competitor, Hybe, from acquiring it. In a statement, Kakao Corp called the situation "unfortunate", adding that its chief executive, Shina Chung, would lead the effort to minimise any management vacuum.

Founder of South Korea's Kakao arrested for suspected stock manipulation

Founder of South Korea's Kakao arrested for suspected stock manipulation

Founder of South Korea's Kakao arrested for suspected stock manipulation

Founder of South Korea's Kakao arrested for suspected stock manipulation

Founder of South Korea's Kakao arrested for suspected stock manipulation