Financial Supervisory Service Special Investigation Unit, Arrest Warrants for Kakao and Kakao Entertain Employees over SM Price Manipulation Suspicion

Financial Supervisory Service, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

The prosecution has requested arrest warrants for three executives of Kakao and Kakao Entertainment who were suspected of stock price manipulation during the management rights dispute at SM Entertainment (SM).

According to financial authorities on the 13th, the Capital Market Special Judicial Police (Special Judicial Police) of the Financial Supervisory Service applied for arrest warrants at the Seoul Southern District Prosecutors' Office against three individuals, including Bae Jae-hyun, Chief Investment Officer of Kakao, on charges of violating the Capital Markets Act related to suspected stock price manipulation. On the same day, the Southern District Prosecutors' Office requested arrest warrants for Bae, the head of Kakao's Investment Strategy Office, and the head of Kakao Entertainment's Investment Strategy Division.

They are accused of investing approximately 240 billion KRW in February to interfere with the public tender offer by HYBE Entertainment, a competitor in the SM management rights acquisition battle, and manipulating SM's stock price to be above HYBE's public tender offer price.

Additionally, it has been identified that they did not file a large shareholder report (5% report) for their holdings of SM stock.

This content was produced with the assistance of AI translation services.