[Featured Stock] 'SM Price Manipulation Suspicion' Causes Kakao to Drop 3.7%... Falls Below 40,000 Won
Amid allegations of market manipulation during the management rights dispute at SM Entertainment (SM), Kakao group stocks are showing a widespread decline. In particular, Kakao's stock fell below 40,000 won, hitting a 52-week low.
As of 10:15 a.m. on the 20th, Kakao was trading at 39,000 won, down 3.70% from the previous trading day. During the session, Kakao's stock price dropped to 38,850 won, marking a 52-week low.
Kakao group stocks are also showing a broad weakness. At the same time, KakaoBank fell 4.79% to 21,850 won, KakaoPay dropped 4.38% to 37,150 won, and KakaoGames declined 1.50%.
On the previous day, Bae Jae-hyun, Kakao’s Chief Investment Officer, was arrested on charges of market manipulation during the SM management rights dispute. He is accused of investing about 240 billion won to raise SM’s stock price above the tender offer price by HYBE, the rival in the SM management rights acquisition battle, in order to obstruct HYBE’s public tender offer in February.
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Additionally, the Financial Supervisory Service’s Capital Market Special Judicial Police (Special Judicial Police) has notified Kim Beom-su, the founder and former chairman of Kakao’s board, to appear on the morning of the 23rd. The Special Judicial Police conducted raids on Kakao and SM in April, and later on Kim Beom-su’s office in August.
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