[Featured Stock] Kakao Declines as Center Director Kim Beom-su Appears Before FSC... 52-Week Low

Kim Beom-su, former chairman of Kakao, is appearing at the Financial Supervisory Service on the 23rd to be investigated regarding allegations of stock price manipulation in the acquisition of SM Entertainment. Photo by Kang Jin-hyung aymsdream@

As Kim Beom-su, head of Kakao's Future Initiative Center, appeared at the Financial Supervisory Service (FSS) regarding allegations of market manipulation involving SM Entertainment (SM), Kakao's stock declined.

As of 11:13 a.m. on the 23rd, Kakao was trading at 38,450 KRW, down 1.54% from the previous trading day. On the same day, Kakao's stock price fell to 38,150 KRW during intraday trading, marking a 52-week low.

Kim Beom-su arrived at the Financial Supervisory Service in Yeouido, Seoul, around 10 a.m. and said, "I will sincerely cooperate with the investigation." However, he did not respond to questions such as whether he had been previously informed about the market manipulation allegations or his thoughts on the statement that Kakao is facing its biggest crisis since its founding.

The FSS's Capital Market Special Judicial Police (Special Judicial Police) is expected to investigate the extent of former Chairman Kim's involvement in the SM market manipulation allegations.

Earlier, on the 19th, the Seoul Southern District Court issued an arrest warrant for Bae Jae-hyun, Kakao's Chief Investment Officer, who is suspected of violating the Capital Markets Act, citing concerns over evidence tampering and flight risk. According to the FSS Special Judicial Police, Bae and two others are suspected of investing approximately 240 billion KRW in February to raise SM's stock price above the tender offer price by HYBE, the rival in the SM management rights acquisition battle, with the intent to obstruct HYBE's tender offer.

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