Kim Beom-su, Kakao Chairman, Faces First Trial Verdict Today Over 'SM Stock Manipulation Allegations'

The first trial verdict for Kim Beom-su, Chairman of the Management Reform Committee and founder of Kakao, who is accused of manipulating the stock price of SM Entertainment, will be delivered on October 21.

Yonhap News Agency

The 15th Criminal Division of the Seoul Southern District Court, presided over by Chief Judge Yang Hwanseung, will hold a sentencing hearing at 11 a.m. on this day for Chairman Kim, who has been indicted on charges of violating the Capital Markets Act.

Chairman Kim is accused of manipulating the stock price by keeping it higher than the public tender offer price in order to obstruct a public tender offer by competitor HYBE during the acquisition of SM Entertainment in February 2023.

At the sentencing hearing held in August, the prosecution requested the court to sentence Chairman Kim to 15 years in prison and a fine of 500 million won.

For Bae Jaehyun, former Chief Investment Officer of Kakao, who was indicted on the same charges, the prosecution requested a sentence of 12 years in prison and a fine of 500 million won. For Kakao Corporation and Kakao Entertainment, the prosecution requested a fine of 500 million won each.

The court stated, "The key issue in this case appears to be the methods and scope of on-market purchases permitted during the public tender offer period," adding, "It is extremely difficult to definitively conclude either way, so we will judge the case based on fair standards and perspectives without leaning toward either side."

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