Prosecutors Appeal First Trial Acquittal of Former Kakao Entertainment CEO Kim Sungsoo

Prosecutors have appealed the first trial verdict that acquitted former Kakao Entertainment CEO Kim Sungsoo, who was accused of causing the company losses exceeding 30 billion won by acquiring the drama production company Baram Pictures at an inflated price.

According to the Seoul Southern District Prosecutors' Office on October 10, prosecutors submitted a notice of appeal to the 15th Criminal Division of the Seoul Southern District Court (Presiding Judge Yang Hwansung) on October 2.

The prosecution stated, "We have appealed on the grounds of factual misinterpretation and misunderstanding of legal principles," adding, "We plan to thoroughly maintain the prosecution by providing additional evidence regarding the first trial's judgment."

Previously, during the final hearing, prosecutors had sought a 10-year prison sentence and a forfeiture of 1.25 billion won for former CEO Kim, who was indicted on charges including aggravated breach of trust under the Act on the Aggravated Punishment of Specific Economic Crimes. However, on September 30, the court acquitted Kim. For Lee Junho, former head of investment strategy at Kakao Entertainment who was indicted alongside Kim, prosecutors requested an 8-year prison sentence, but the court sentenced him to 2 years in prison, suspended for 3 years.

The verdict was based on insufficient evidence regarding whether financial losses had actually occurred and whether there was receipt or offering of illicit gains. In the first trial, the court stated regarding Kim's breach of trust charges, "It is acknowledged that there were financial transactions between the defendants, and there is suspicion that these transactions may be related to Baram Pictures." However, the court also explained, "The circumstances raising suspicion and the evidence submitted by the prosecutor are insufficient to conclude that an inflated acquisition was requested or actually took place."

Lee was accused of causing losses to the company by having Kakao Entertainment acquire Baram Pictures, a drama production company he actually owned, at an inflated price, thereby gaining about 31.9 billion won in profits. Kim was accused of receiving 1,256,460,000 won from Lee as a reward for colluding in the scheme.