Prosecutors Seek Arrest Warrant for Private Equity Fund CEO on 'SM Price Manipulation Charges'

Fund Mobilization... Suspicion of Deliberate High-Price Purchase of SM

Kakao Pangyo Agit, Seongnam, Gyeonggi. Photo by Jinhyung Kang aymsdream@

The prosecution investigating Kakao's SM stock price manipulation allegations has requested an arrest warrant for Mr. A, the CEO of private equity firm One Asia Partners, who is suspected of participating in the stock price manipulation.

The Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office (Chief Prosecutor Park Geon-yeong) announced on the 26th that it had requested an arrest warrant for Mr. A on charges including violation of the Capital Markets and Financial Investment Business Act the previous day.

According to the prosecution, Mr. A is suspected of conspiring with Kakao to mobilize fund capital and purchase SM Entertainment shares at a high price in February last year to block the public tender offer by rival HYBE during the SM Entertainment acquisition battle.

Earlier, the Capital Market Special Judicial Police (Special Judicial Police) of the Financial Supervisory Service referred One Asia Partners officials to the prosecution in January on related charges.

The prosecution also uncovered separate charges related to stock price manipulation and launched a compulsory investigation.

Bae Jae-hyun, Kakao's Chief Investment Officer, and Kakao Corporation, who were previously indicted on SM stock price manipulation allegations, have denied all charges in court.