Financial Supervisory Service Raids Kim Beom-su, Kakao Founder... Suspected Market Manipulation of SM Entertainment

Kakao Followed by SM Entertainment Stock Price Manipulation Allegations

The Financial Supervisory Service is conducting a search and seizure at the office of Kim Beom-su, the founder of Kakao, in connection with allegations of stock price manipulation involving SM Entertainment.

On the 10th, the Capital Market Special Judicial Police of the Financial Supervisory Service obtained a warrant after detecting signs that the founder Kim and other top executives were involved during the investigation of the SM stock price manipulation allegations.

Kim Beom-su, Head of Kakao Future Initiative Center, attended the comprehensive audit of the Ministry of Science and ICT and related audit target organizations held at the National Assembly on the 24th, responding to questions from lawmakers. Photo by Yoon Dong-ju doso7@

Earlier, in February, the Financial Supervisory Service began an investigation into allegations of stock price manipulation filed by HYBE, a competitor in the acquisition of SM Entertainment. At that time, HYBE submitted a petition to the Financial Supervisory Service claiming that "a specific group was abnormally purchasing SM Entertainment shares to drive up the stock price and obstruct HYBE's public tender offer."

Recently, based on the investigation results, the Financial Supervisory Service utilized the 'fast-track' procedure to transfer the case to the prosecution and initiated a joint investigation.