A Seoul court docket issued an arrest warrant for Brian Kim, the founding father of South Korean web large Kakao, on allegations of inventory value manipulation associated with the corporate’s takeover of Ok-pop company SM Leisure in 2023.
The Seoul Southern District Court docket mentioned on Tuesday that it had issued a warrant for Kim’s arrest after a listening to on Monday because of “considerations of proof destruction and flight.”
He might be jailed for as much as 20 days as prosecutors examine additional sooner than bringing fees. This might probably disrupt Kakao’s operations and plans round AI, because the founder has been a key determine within the corporate’s strategic choices.
A spokesperson at Kakao instructed TechCrunch that the company would do all it would to attenuate the control hole with its co-chairs and council.
Kim is dealing with accusations that he used to be all in favour of manipulating SM Leisure’s proportion value all through a bidding struggle for that corporate in 2023. Kakao used to be competing with Hybe, the landlord of South Korean song company BigHit, which is at the back of Ok-pop boyband BTS.
Kakao is reportedly accused of buying KRW 240 billion (~ $174 million) of SM Leisure’s stocks over 553 trades in February 2023. That allegedly drove the corporate’s proportion value above Hybe’s gentle be offering value of 120,000 KRW in step with proportion, which led to Hybe to withdraw its be offering.
Kakao mentioned in a observation remaining week that the allegations aren’t true, as Kim had by no means ordered or tolerated any unlawful actions.
Kakao’s leader funding officer, Jae-Hyun Bae, used to be arrested remaining October following allegations of inventory value manipulation after the takeover. He’s lately on trial.
Kakao, based in 2006, introduced South Korea’s most well liked messaging app, KakaoTalk, in 2010. It changed into the rustic’s Tremendous App and now gives an array of products and services, together with on-demand taxi carrier Kakao Mobility, on-line banking platform Kakao Financial institution, and song streaming carrier Melon. From 2011 to 2022, Kakao finished 13 acquisitions, with a mean acquisition quantity of $546 million, in step with Tracxn.
