Prosecutors Expand Kakao Investigation Scope... "One Asia Subject to Separate Search and Seizure for Additional Charges"

The prosecution, investigating Kakao's alleged illegal market manipulation during the acquisition process of SM Entertainment, has recently identified another suspicion related to the asset management company 'One Asia Partners,' which is closely affiliated with Kakao, and has launched an investigation.

A representative from the Seoul Southern District Prosecutors' Office told reporters on the afternoon of the 23rd, "Regarding the market manipulation charges, on the 18th, a case involving personnel from One Asia Partners was transferred from the Financial Supervisory Service," adding, "During the investigation, separate charges unrelated to market manipulation were identified, and a search and seizure was conducted." The search and seizure reportedly took place on the 17th. However, the official did not disclose specific details about the charges.

Regarding the summons schedule for Kim Beom-su, former chairman of Kakao's board, the official said, "It is not yet the stage to specify a concrete date," and added, "We need to conduct further investigations into the matters transferred from the Financial Supervisory Service last week related to One Asia Partners."

[Image source=Yonhap News]

Regarding the controversy over the high-priced acquisition that arose during Kakao Entertainment's 2020 acquisition of the drama production company 'Baram Pictures,' the company stated, "Investigations of the related parties are ongoing." At the time of acquisition, Baram Pictures had not generated revenue for three years and was in a state of capital erosion, but Kakao purchased the company for 40 billion KRW, sparking controversy over the high acquisition price.

The Southern District Prosecutors' Office has recently taken over and begun investigating complaints against BNP Paribas Hong Kong branch and HSBC Hong Kong branch related to the problematic 'illegal naked short selling' in the financial sector. To assist with the investigation, five special judicial police officers from the Financial Supervisory Service's Capital Markets Special Judicial Police have been dispatched. A representative from the Southern District Prosecutors' Office said, "It has not been long since the case was formally transferred," and added, "The data confirmed by the Financial Supervisory Service is extensive, so we are accelerating the review of the contents."

Meanwhile, the Southern District Prosecutors' Office is also thoroughly reviewing the Lime and Optimus scandals, which had suspicions of inadequate investigations during the Moon Jae-in administration. A representative said, "We are re-examining the Lime fund from the beginning to check if there were any shortcomings in the previous investigations and to verify how the Lime fund's money was used, going through each part one by one," but added, "It is not yet the stage to disclose investigation results."

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