Kakao Founder Cleared: A Victory in Stock Manipulation Case

Kakao Corp founder Kim Beom-su has been cleared of stock manipulation charges by a South Korean court. Initially, prosecutors aimed for a 15-year jail sentence and hefty fines. Kim was accused of manipulating SM Entertainment's stock to block a competitor. The court's decision has positively impacted Kakao's stock prices.

In a significant legal development, Kim Beom-su, the founder of Kakao Corp, has been acquitted of stock manipulation charges by a South Korean court. The decision comes in contrast to the prosecutors' earlier demand for a 15-year imprisonment and a fine of 500 million won ($350,000).

Kim, who was arrested in July last year, faced allegations of manipulating the stock prices of SM Entertainment in 2023 to prevent a buyout by rival company Hybe. After spending time in custody, Kim was released on bail in October 2024. Following the court ruling, shares of Kakao Corp, known for operating the nation's largest chat app, saw a 5.3% increase.

Kakao has not yet issued a statement regarding the court's decision. The exchange rate at the time was $1 equating to 1,421.4800 won.

(With inputs from agencies.)