SEOUL — Kim Beom-su, founder of Kakao Corp., is set to be referred to the prosecution over suspected stock price manipulation linked to the company's attempted takeover of a K-pop entertainment house. The Seoul Southern District Prosecutors Office confirmed that the referral was scheduled to include Kim and several lawyers involved in the case.
According to Yonhap News Agency, this action follows earlier referrals of the mobile platform company, its entertainment subsidiary, and three senior Kakao executives on suspicions of manipulating the stock prices of SM Entertainment. The issue arose during a February bidding war against Hybe, parent company of K-pop superband BTS' management agency BigHit. Kakao and its executives are accused of inflating SM's share prices by investing about 240 billion won in an attempt to acquire the entertainment firm. Last month, the Financial Supervisory Service referred Kakao and related entities for potential indictment on charges of violating the Capital Markets Act, after questioning Kim as a suspect. The prosecution's move also includes several lawyers who advised Kakao on the takeover bid.