Photo Credit: Kim Beom-su by ACROFAN / CC by 3.0
Second verse, same as the first: Prosecutors again seek a 15-year prison sentence for Kakao founder Kim Beom-su for alleged SM Entertainment stock price manipulation.
Kakao founder Kim Beom-su once again faces a potential 15-year prison sentence over the alleged stock price manipulation during the takeover of SM Entertainment. Prosecutors at the final hearing on Wednesday before the Seoul High Court’s Criminal Division 4-1 asked the court to impose 15 years in prison and a fine of 510 million won (~$373,305) on charges of violating the Financial Investment Services and Capital Markets Act. This is the same demand made during the first trial, in which Kim was acquitted.
Prosecutors seeking to overturn the lower court’s ruling last year similarly sought 12 years in prison and a fine of 510 million won for Bae Jae-hyun, the former head of Kakao’s investment division, who was indicted on the same charges. The request also matches that made during the first trial.
“The lower court’s ruling contains errors in its findings of fact and in its application of the law, and the acquittals of the defendants should be overturned,” said prosecutors.
Kim, who is also known as Brian Kim, was indicted on charges of having bought around 240 billion won worth of SM Entertainment shares in more than 500 separate transactions. The purchase was allegedly made to manipulate the price and keep the stock above the 120,000 won offer price in February 2023, blocking an offer from rival company Hybe.
Further, he faces charges of failing to comply with rules requiring disclosure of a large shareholding, which covered an 8.16% stake in SM Entertainment, by concealing shares held by One Asia Partners.
The first trial in October last year acquitted Kim, finding that testimony from a key witness lacked credibility and declining to admit it as evidence. Kim was originally arrested in July 2024 on charges of involvement in manipulating the share price of SM Entertainment in 2023 but was released on bail in October 2024.
Kim continues to deny the allegations, stating that he never ordered nor tolerated any illegal activity.
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