South Korean prosecutors have indicted Kim Beom-su, the billionaire founder of Kakao Corp, on charges of stock market manipulation, Yonhap news agency reported on Thursday. Kim, also known as Brian Kim, was arrested last month and has been detained since.
Kim is renowned for his contributions to South Korea’s digital industry, having built Kakao’s network of affiliates, valued at 86 trillion won ($62 billion), from the launch of the popular messaging app KakaoTalk in 2010. Prosecutors allege that Kim was involved in manipulating the stock price of SM Entertainment in February last year to prevent competitor Hybe from acquiring it.
Kim has denied these accusations, stating through the company that he never ordered or condoned any illegal activities.
Despite the legal issues, Kakao Corp reported an operating profit of 134 billion won ($97.24 million) for the second quarter, a rise of 18.5% from the previous year. During a post-earnings call, Kakao CEO Shina Chung acknowledged shareholders’ concerns about the challenges from internal and external circumstances but assured that the company would continue its services without interruption. Chung did not provide further details regarding the legal proceedings.
Additionally, former Kakao CEO Hong Eun-taek and former Kakao Entertainment CEO Kim Sung-soo have also been indicted but are not detained.
