Prosecutors have summoned Kim Beom-su, Chairman of Kakao's Management Innovation Committee.

The Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office (headed by Chief Prosecutor Jang Dae-kyu) summoned Chairman Kim on the morning of the 9th for questioning on allegations of violating the Capital Markets Act.

Chairman Kim is accused of manipulating stock prices to hinder HYBE's takeover bid during Kakao's acquisition process of SM Entertainment in February last year.

The accusation involves injecting approximately 240 billion KRW to manipulate and stabilize SM Entertainment's stock price above HYBE's public tender offer price of 120,000 KRW.

He is also accused of violating disclosure obligations. In collusion with the private equity fund One Asia Partners, Kakao did not report holding more than a 5% stake in SM Entertainment to the financial authorities.

Following HYBE's failed acquisition attempt, Kakao emerged as the largest shareholder of both Kakao Entertainment and SM Entertainment. Prosecutors are investigating Kim's potential involvement in this process.

Earlier, prosecutors brought Bae Jae-hyun, Head of Investment at Kakao, and the Kakao corporation to trial on similar charges. Bae denied the allegations, claiming no illegality.

<Photo Source=Kakao>