Prosecutors have requested an arrest warrant for Kim Beom-soo, the founder of Kakao and Chairman of the Management Innovation Committee. The Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Jang Dae-kyu) requested the warrant on the 17th, accusing Chairman Kim of violating the Capital Markets Act and the Financial Investment Services and Capital Markets Act.

Earlier, on the 9th, prosecutors summoned Chairman Kim and conducted an overnight investigation lasting over 20 hours. Eight days later, they sought to secure his custody.

Chairman Kim is accused of manipulating the stock price of SM Entertainment during its acquisition process in February last year to prevent a public tender offer by competitor HYBE. He allegedly inflated SM Entertainment's stock price to exceed HYBE's offer.

He is also accused of violating disclosure obligations. In collaboration with private equity firm One Asia Partners, he failed to report holding more than 5% of SM Entertainment's shares to financial authorities.

During the prosecution's investigation, Chairman Kim stated, "It is true that I was informed about the plan to purchase SM Entertainment's stocks. However, I did not receive reports on the specific purchase process."

The prosecution has expanded its investigation into Kakao. Bae Jae-hyun, Kakao's Chief Investment Officer, and Kakao Corporation, who faced similar charges, were previously brought to trial, and the first instance trial is currently underway.

<Photo source=Kakao>