South Korean prosecutors have arrested Brian Kim, the billionaire founder of technology giant Kakao Corp., on suspicion of stock price rigging. The allegations stem from his company's takeover of a major K-pop agency last year. Here are the key details:
1. Arrest and Allegations:
- Kim orchestrated and approved schemes to collaborate with a private equity fund operator.
- The goal was to manipulate the stock price of K-pop agency SM Entertainment.
- This manipulation aimed to prevent Hybe Corp. (parent company of K-pop sensation BTS) from acquiring SM Entertainment.
- Kim denies these allegations.
2. Background:
- Kakao Corp., known for its popular local mobile chat app, Kakao Talk, has diversified into banking and online shopping.
- SM Entertainment's top executives opposed Hybe's takeover attempt, fearing industry monopolization and higher costs for fans.
- Kakao supported SM Entertainment as a "friendly" partner.
3. Legal Process:
- The Seoul Southern District Court approved an arrest warrant for Kim.
- Prosecutors have up to 20 days to investigate and decide whether to indict him.
4. Impact:
- Kakao's stock price fell nearly 5% following the news.
In summary, Brian Kim's arrest highlights the intersection of tech, finance, and K-pop in South Korea. We'll keep you updated as
the investigation unfolds.
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