Kakao Founder Cleared of Stock Manipulation Charges

South Korean court acquits Kakao Corp founder Kim Beom-su of stock manipulation, avoiding a 15-year jail sentence and a large fine. Kim was accused of influencing SM Entertainment's stock price in 2023 to block Hybe's acquisition attempt, but was released on bail later.

In a significant legal development, Kakao Corp founder Kim Beom-su has been acquitted of stock manipulation charges by a South Korean court, according to Yonhap news agency. This verdict clears Kim of allegations that he was involved in artificially inflating the stock price of SM Entertainment in 2023.

Prosecutors had earlier sought a severe penalty—15 years of imprisonment and a fine of 500 million won ($350,000). This high-profile case had drawn widespread attention, especially given the competitive stakes involving rival company Hybe and its acquisition ambitions.

Kim Beom-su was initially arrested in July of last year but subsequently released on bail in October 2024. The court's decision effectively removes the cloud of criminality surrounding the Kakao founder, offering a reprieve to the tech magnate in his ongoing business endeavors.

(With inputs from agencies.)