Citing Misinterpretation of Facts and Errors in Legal Principles
The prosecution has appealed the first trial verdict that acquitted Kim Beom-su, head of Kakao Future Initiative Center and former Chairman of the Management Innovation Committee, who was accused of manipulating the stock price of SM Entertainment.
Kim Beom-su, head of Kakao Future Initiative Center, suspected of conspiring to manipulate SM Entertainment's stock price, is seen leaving the court after the first trial verdict at Seoul Southern District Court in Yangcheon-gu on the 21st, expressing his stance. Photo by Yonhap News
The Seoul Southern District Prosecutors’ Office explained that it filed an appeal against the first trial verdict for Kim and others indicted on charges of violating the Capital Markets Act, citing “misinterpretation of facts and errors in legal principles.”
The prosecution further stated, “This case involves Kakao using illegal means such as price fixing to acquire SM Entertainment, thereby obstructing HYBE’s legitimate public tender offer and causing losses to ordinary investors who were misled into believing the stock price would rise.”
The prosecution noted that evidence such as messages and recorded phone calls among Kakao officials discussing price manipulation, as well as recordings of coordinated responses after the investigation began, were not considered in the first trial.
Regarding the court’s mention in the first trial verdict that the key witness appeared to have given false testimony due to pressure from a separate investigation, the prosecution stated that, regardless of whether the ruling was justified or not, “institutional safeguards will be established.”
With the prosecution’s appeal, the case will now be reviewed again by the Seoul High Court.
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