Prosecutors Raid Kakao Over 'SM Entertainment Stock Price Manipulation Suspicion'
Prosecutors investigating allegations of stock price manipulation involving Kakao's SM Entertainment (hereinafter SM Entertainment) have conducted a search and seizure operation at Kakao.
Kim Beom-su, former chairman of Kakao, is appearing at the Financial Supervisory Service on the 23rd of last month to be investigated regarding allegations of stock price manipulation related to the acquisition of SM Entertainment. Photo by Kang Jin-hyung aymsdream@
View original imageAccording to the legal community on the 22nd, the Seoul Southern District Prosecutors' Office sent prosecutors and investigators to Kakao's Pangyo headquarters to carry out the search and seizure.
The Financial Supervisory Service's Capital Market Special Judicial Police (Special Judicial Police) handed over Kim Beom-su, head of Kakao's Future Initiative Center, to the prosecutors on the 15th without detention. The Special Judicial Police transferred a total of six people, including Kim, Hong Eun-taek, CEO of Kakao, Lee Jin-su and Kim Sung-soo, CEOs of Kakao Entertainment, and two legal advisory lawyers.
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The prosecutors previously indicted Bae Jae-hyun, Chief Investment Officer, who was transferred earlier, on the 13th under detention, and investigations into Kang Ho-jung, head of Kakao's Investment Strategy Office, and Lee Jun-ho, head of Kakao Entertainment's Investment Strategy Division, are ongoing.
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