SEOUL, South Korea - The head of the Financial Supervisory Service (FSS) stated on Friday that the current investigation into alleged stock manipulation by Kakao Corp., the social media behemoth, is being conducted "by the book."
According to a new release by Yonhap News Agency, FSS Chief Lee Bok-hyun made this statement in response to questions about the recent questioning of Kakao founder Kim Beom-su during a parliamentary audit of the agency. Kim was summoned earlier this week over allegations that Kakao and its executives had invested around 240 billion won (US$177.9 million) to elevate the stock price of K-pop firm SM Entertainment. This move allegedly came after another K-pop giant, Hybe, acquired a 14.8 percent stake in SM Entertainment with the intention of taking over the company.
Earlier this month, Kakao's Chief Investment Officer, Bae Jae-hyun, was arrested on suspicion of stock manipulation. The FSS also referred three Kakao executives, including Bae, along with Kakao Corp. and its entertainment subsidiary, to the prosecution on Thursday for further examination and possible indictment.