The first trial of Kim Beom-su, Chairman of the Management Innovation Committee and founder of Kakao, who was detained and indicted on charges of instructing and conspiring to manipulate the market price during the acquisition process of SM Entertainment, will be held on September 11.
According to the legal community on the 9th, the Seoul Southern District Court Criminal Division 15 (Presiding Judge Yang Hwan-seung) will hold the first hearing at 10:30 a.m. on the 11th of next month for Kim, who was indicted on charges of violating the Capital Markets Act, along with former Kakao CEO Hong Eun-taek, former Kakao Entertainment CEO Kim Sung-soo, and Kang Ho-jung, head of Kakao’s Investment Strategy Office.
Typically, the first hearing involves the prosecution explaining the charges against the defendants and confirming the defendants’ positions regarding these charges. Since formal trials require the defendant’s attendance, Kim, who is currently in custody, must appear in court.
At the first hearing, discussions are also expected regarding the consolidation of trials with those of Bae Jae-hyun, former head of Kakao’s Investment Division, and Ji Mo, CEO of the private equity firm One Asia Partners, who were successively indicted last year in connection with the SM Entertainment market manipulation case and whose first trials are ongoing. Generally, if there is significant overlap in charges and evidence, cases are consolidated for efficiency, and Kim’s side submitted a motion for consolidation to the court the day before.
According to the prosecution, Kim is accused of manipulating the market price by fixing SM Entertainment’s stock price above the public tender offer price of 120,000 won in order to obstruct the public tender offer by competitor HYBE during the acquisition process of SM Entertainment over four days: February 16?17 and 27?28 last year.
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