In February of last year, Ji Chang-bae, CEO of One Asia Partners (48), who was indicted for manipulating SM Entertainment stock prices in collusion with Kakao while Kakao and HYBE were competing for management rights of SM Entertainment, denied the charges at his first trial.
On the 14th, the Criminal Division 15 of the Seoul Southern District Court (Presiding Judge Yang Hwan-seung) held the first trial for Ji, who was charged with violating the Capital Markets Act (price manipulation).
Ji’s defense attorney from Kim & Chang stated in court, "There was no motive or purpose to block HYBE’s public tender offer through manipulation of SM stock prices," and "There is no fact that the defendant traded to raise the stock price," denying the prosecution’s allegations.
He added, "The defendant (Ji) began purchasing SM shares on February 2, before HYBE declared its public tender offer on February 10, 2023," and "This fact is difficult to reconcile with the criminal facts of this case, which claim that the shares were purchased to block the tender offer."
However, Ji admitted to charges other than the Capital Markets Act violation, including embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes. Ji is accused of embezzling 10.4 billion KRW of fund money in 2019 for personal use. Regarding this, Ji’s defense attorney said, "At the time, he was not fully aware that such actions constituted embezzlement or breach of trust, and now he fully admits to it," but added, "He used the funds solely to secure liquidity for management purposes and did not use them for personal reasons."
According to the prosecution, Ji is accused of mobilizing approximately 110 billion KRW of fund money last February to block HYBE’s public tender offer for SM Entertainment, colluding with Kakao to manipulate prices through high-price purchases and exhausting sell orders.
The prosecution arrested and indicted Ji on the 15th of last month.
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