Representative of Private Equity Fund Operator Arrested for Involvement in 'SM Price Manipulation'... "Risk of Evidence Destruction and Flight"

Ji Mo, the CEO of private equity firm One Asia Partners, who is accused of participating in Kakao's 'SM price manipulation,' was arrested on the 27th.

Han Jeong-seok, the presiding judge of the Criminal Division 2 at the Seoul Southern District Court, held a pre-arrest detention hearing (warrant review) for Ji Mo, who is charged with violating the Capital Market Act, and issued an arrest warrant, stating, "There is a risk of evidence destruction and flight."

According to the prosecution, Mr. A is accused of conspiring with Kakao to prevent the public tender offer by HYBE, a competitor, during the acquisition process of SM Entertainment in February last year, manipulating the market by using fund capital to purchase SM shares at high prices. The Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office filed an arrest warrant request the day before.

In relation to this, the Capital Market Special Judicial Police of the Financial Supervisory Service referred Ji Mo and other One Asia Partners officials to the prosecution in January.

Baek Jae-hyun, Kakao's Chief Investment Officer, and Kakao Corporation, who were previously indicted on suspicion of SM price manipulation, have completely denied the charges in court.