SEOUL, - South Korea's financial regulator announced on Thursday that it has referred social media company Kakao Corp., its entertainment subsidiary, and three senior executives to prosecutors. The allegations involve manipulating stock prices in connection with a takeover bid for K-pop powerhouse SM Entertainment.
According to a new release by the Yonhap News Agency, Kim Beom-su, the founder of Kakao, was not included in the list of individuals sent to prosecutors. The accused have allegedly engaged in stock price manipulation to gain a major share in SM Entertainment, a significant player in the K-pop industry.
Earlier this month, Kakao's Chief Investment Officer, Bae Jae-hyun, was arrested on suspicion of stock manipulation. Bae has denied any wrongdoing in the case.