'SM Market Manipulation' Kakao Case Lead Prosecutor Resigns

The chief prosecutor of the Seoul Southern District Prosecutors' Office, who has been in charge of investigating Kakao officials suspected of manipulating SM Entertainment's stock price, recently tendered his resignation, according to reports on the 8th.

Seoul Southern District Prosecutors' Office, Yangcheon-gu, Seoul.
Photo by Daehyun Kim kdh@

According to legal circles on the day, Jang Daegyu, chief prosecutor of the Financial Investigation Division 2 at the Seoul Southern District Prosecutors' Office (Judicial Research and Training Institute class 37), has expressed his intention to resign. Chief Prosecutor Jang is recognized for his expertise in investigating related crimes, having received the 'Blue Belt' certification (Level 2 certified specialist prosecutor by the Supreme Prosecutors' Office) in securities and finance fields. A representative from the Southern District Prosecutors' Office stated that the reason for his resignation is "personal and cannot be disclosed."

Chief Prosecutor Jang was appointed head of the Financial Investigation Division 2 at the Southern District Prosecutors' Office in June last year and led the investigation into the 'SM Entertainment stock price manipulation' allegations involving Kakao. He achieved results by indicting Kim Beom-su, Kakao's founder and chairman of the management innovation committee, after investigation and detention. However, after bail was granted to Chairman Kim, an appeal was filed but was recently dismissed by the Seoul High Court.

Besides this case, the Financial Investigation Division 2 is also investigating Kakao Mobility, a Kakao affiliate, for alleged violations of the Fair Trade Act. This case was reported to the prosecution by the Korea Fair Trade Commission. Regarding the assignment of this case to the Southern District Prosecutors' Office instead of the Central District Prosecutors' Office, a legal insider familiar with internal affairs commented, "This indicates that Kakao-related cases are being directed from higher levels at the Supreme Prosecutors' Office."

Regarding the background of Chief Prosecutor Jang's resignation, some interpret that pressure related to investigations targeting Kakao under the current government may have played a role. On the other hand, considering that it is common for senior prosecutors to resign around this time each year ahead of the regular prosecution personnel reshuffle scheduled for early next month, some view this as an overinterpretation.

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