Silent response to inquiries such as 'Admittance of Charges'
Kakao founder and Management Innovation Committee Chairman Kim Beom-su, considered the pinnacle of the 'SM price manipulation' suspicion, is attending the detention hearing (warrant review) held at the Southern District Court in Yangcheon-gu, Seoul on the 22nd. Photo by Hyunmin Kim kimhyun81@
Kim Beom-su, Chairman of Kakao's Management Innovation Committee, who is suspected of market manipulation during the acquisition process of SM Entertainment (SM), appeared at the Seoul Southern District Court on the 22nd for a detention hearing.
Kim, who is facing charges including violation of the Capital Markets Act, remained silent when reporters asked questions such as "Do you admit to the allegations of market manipulation regarding SM?" before the pre-trial detention hearing (warrant hearing) in the afternoon, and headed into the courtroom.
According to the prosecution, Kim is suspected of manipulating the stock price during the acquisition of SM last February to set and fix the price higher than the public tender offer price of 120,000 KRW by competitor HYBE, thereby obstructing HYBE's public tender offer.
The prosecution believes that Kakao, together with the private equity fund operator One Asia Partners, mobilized about 240 billion KRW over four days?February 16-17 and 27-28 last year?and purchased SM shares 553 times at high prices. However, it is known that the detention warrant request for Kim only specifies the market manipulation allegations for February 28.
During the prosecution's summons investigation, Kim reportedly testified that he was informed of the agenda to purchase the shares but was not briefed on the specific process.
Additionally, at an interim group council meeting where Kakao CEO Jeong Shin-ah and CEOs of major affiliates belonging to the CA Council gathered to discuss group issues, Kim rebutted by saying, "As this is an ongoing matter, I cannot explain in detail, but the allegations currently being faced are not true," and added, "Since I have never ordered or condoned any illegal acts, I believe the truth will eventually be revealed."
Meanwhile, the detention hearing for Kim will be presided over by Judge Han Jeong-seok, who is in charge of warrants at the Seoul Southern District Court. The decision on detention is expected to be announced as early as late tonight.
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