South Korean prosecutors say they’ve arrested Kim Beom-su, the billionaire founding father of tech large Kakao, on suspicion of inventory worth manipulation. The case is said to the corporate’s acquisition of Korean pop music company SM Leisure final 12 months.
In keeping with the Related Press, “Kim Jong-un faces accusations that he deliberate and authorized a plan to cooperate with non-public fairness fund operators to intentionally inflate SM Leisure’s inventory worth to stop Hybe from buying SM Leisure.”
Hybe Corp., the powerhouse behind BTS, is attempting to accumulate a 15% stake in SM Leisure, which is being offered by its estranged founder Lee Soo-man. However Hybe was stymied by resistance from SM Leisure administration and better affords from Kakao and its allies.
Kim, also referred to as Brian Kim, has denied the costs, in keeping with the Seoul prosecutor’s workplace, which additionally stated one other Kakao government and the pinnacle of a inventory fund have been indicted in the identical case.
Prosecutors stated they sought the arrest warrant as a result of they feared King would possibly flee or destroy proof. They’ve 20 days from Tuesday’s arrest to cost him.
King has not commented since his arrest. Nonetheless, final week, following a employees assembly, Kakao issued an announcement. “These accusations will not be true. I by no means directed or condoned any unlawful habits.
SM is South Korea’s second largest music expertise firm, with music teams together with Tremendous M, Aespa, BoA and Crimson Velvet, Ladies’ Era, HOT, EXO, Tremendous Junior, SHINee and NCT Dream.
Though Hybe relinquished management of SM Leisure in March 2023 after a quick however intense battle, it continues to complain about Kakao’s acquisition mechanism. In April 2023, prosecutors raided the places of work of SM Leisure, searching for proof of inventory worth manipulation.
Monetary business sources stated Kakao could possibly be severely broken if Kim is charged or subsequently discovered responsible. They stated the case might jeopardize its banking associates, synthetic intelligence enlargement and abroad enlargement.
Shares fell on Tuesday earlier than partially rebounding earlier on Wednesday, with Kakao shares buying and selling at 39,650 received, valuing the group at 17.5 trillion received ($12.6 billion). Kim Jong Un reportedly owns 24% of the shares.
