Kakao Founder in Focus: Billion-Dollar Deals and Market Manipulation in South Korea
- Brian Kim, founder of Kakao, imprisoned on charges of market manipulation in South Korea, now released on bail.
- The case could have far-reaching consequences for Kim's business empire and the South Korean internet industry.
Eulerpool News·
Brian Kim, the visionary founder of Kakao Corp., regained his freedom on Thursday after being imprisoned in South Korea on allegations of stock manipulation. This development marks a significant moment for the country's internet industry, where, according to the prosecution, market-distorting practices were pursued to boost a billion-dollar takeover bid for Kpop powerhouse SM Entertainment Co. in 2023.
A Seoul court set Kim's bail at 300 million Won (equivalent to 218,000 USD). Whether Kim has already been released from detention remains unclear. The billionaire entrepreneur faces allegations of artificially inflating SM's stock price to surpass a rival offer from BTS agency Hybe Co. of 120,000 Won per share. These alleged actions were carried out over several days in February 2023 and led to Kim's arrest in July, making him the most prominent tech executive among the accused since the case of Jay Y. Lee from Samsung Electronics Co.
The outcome of this case could have far-reaching consequences for Kim's business empire, which spans several publicly traded companies and numerous internet sectors. Kakao sought the deal to further expand its market presence in the areas of music, shopping, and ride-hailing. Instead, it led to intense legal scrutiny and raised questions about the future of emerging innovators aiming to compete with the country’s established conglomerates.
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