A Seoul court has issued an arrest warrant for South Korean internet founder Brian Kim cocoaover allegations of stock price manipulation related to the company’s takeover of a K-pop agency SM Entertainment In 2023.
The Seoul Southern District Court issued a warrant for Kim’s arrest on Tuesday, citing “concerns about the destruction of evidence and flight” after a hearing on Monday.
He could be jailed for up to 20 days as prosecutors conduct further investigations before filing charges. As the founder was a key figure in the company’s strategic decisions, this could disrupt Kago’s operations and plans around AI.
A Kako spokesperson told TechCrunch that the company will do everything it can to bridge the governance gap with its co-chairs and council.
Kim faces allegations that he was involved in manipulating SM Entertainment’s stock price during a bidding war for the company in 2023. Kakao competes with Hybe, the owner of BigHit, the South Korean music company behind K-pop boyband BTS.
Cocoa is is reported In February 2023 it was accused of buying KRW 240 billion (~ $174 million) worth of SM Entertainment shares over 553 trades. This reportedly boosted the company’s share price above Hybe’s tender offer price of 120,000 KRW per share.
Kako said in a statement last week that the allegations were untrue because Kim never ordered or tolerated any illegal activities.
Kago’s Chief Investment Officer, Jae-Hyun Bae Arrest Last October, after the takeover, there were allegations of rigging in the share price. He is currently under investigation.
Founded in 2006, Kakao launched KakaoTalk, South Korea’s most popular messaging app, in 2010. It is the country’s super app and now offers an array of services including on-demand taxi service Kakao Mobility, online banking platform Kakao Bank and music. Streaming service Melon. From 2011 to 2022, Kakao completed 13 acquisitions, with an average acquisition value of $546 million. According to Tracxn.
