SEOUL — Prosecutors have deemed it necessary to question Kakao Corp. founder Kim Beom-su as part of an ongoing investigation into alleged stock price manipulation during the company's acquisition of K-pop agency SM Entertainment.
According to Yonhap News Agency, the investigation is focusing on whether Kakao and its executives, including Kim, manipulated the stock prices of SM Entertainment to gain an advantage in a takeover bid against Hybe, the company behind K-pop superband BTS.
This legal scrutiny follows after the Financial Supervisory Service referred Kim and several Kakao executives for potential indictment last year, raising suspicions of their involvement in the stock price manipulation. The case has already seen Kakao's chief investment officer, Bae Jae-hyun, indicted and detained on similar charges. The timing for Kim’s questioning is yet to be determined, highlighting the complexity and ongoing nature of the investigation.