Kakao Exec Indicted for Alleged SM Ent. Stock Manipulation, Embezzlement
CryptoNewsTerminal Staff07 Aug, 2024
Kakao Exec Indicted for Alleged SM Ent. Stock Manipulation, Embezzlement
Kim Beom-soo, chief restructuring officer of Kakao, has been indicted for alleged stock price manipulation of SM Entertainment to thwart a hostile takeover attempt by HYBE. The Seoul Southern District Prosecutors' Office's Second Financial Investigation Division indicted Kim for violating the Capital Market Act. He is accused of artificially inflating SM Entertainment's stock price to prevent HYBE's tender offer. Additionally, Kim was indicted for embezzlement and breach of trust involving executives of Kakao affiliates. A civic group filed a complaint alleging misuse of funds raised through the cryptocurrency "Klay (KLAY)." Former Kakao CEOs Hong Eun-taek and Kim Seong-soo were also indicted but without detention.
