FSS Special Investigation Team Conducts Search and Seizure on SM over 'Market Manipulation Suspicion'

by Lee Jungyun

Published 18 Apr.2023 13:34(KST)

The Financial Supervisory Service (FSS) has launched a search and seizure operation at SM Entertainment (SM) in connection with allegations that Kakao manipulated stock prices during the process of acquiring shares in SM.

FSS Special Investigation Team Conducts Search and Seizure on SM over 'Market Manipulation Suspicion'

According to sources in the financial sector on the 18th, the FSS's Capital Market Special Judicial Police (Special Judicial Police) sent investigators to SM's headquarters in Seongsu-dong, Seoul, this morning to conduct a search and seizure of offices and workspaces.

Earlier in February, the FSS began an investigation into allegations of stock price manipulation by Kakao raised by HYBE. On the 6th of this month, the offices of Kakao and Kakao Entertainment were also searched and seized.

The FSS and prosecutors are examining whether Kakao violated the Capital Markets Act by artificially influencing the stock price during HYBE's public tender offer for SM shares.