The Tumultuous Rise of Kim Beom-su: Kakao's Visionary Founder Faces Legal Turmoil

South Korean tech mogul Kim Beom-su, founder of Kakao Corp, has been arrested on stock manipulation charges related to the acquisition of a K-Pop agency. Kim, a rags-to-riches entrepreneur, established KakaoTalk, which dominates South Korea's messaging market. Now, his legal challenges spotlight potential misdeeds during Kakao's aggressive expansion.

South Korean authorities have detained Kim Beom-su, the billionaire vision behind tech powerhouse Kakao Corp, on charges of stock manipulation tied to last year's acquisition of a K-Pop agency. Founder Kim, also known as Brian Kim, is a conspicuous figure in South Korea—a true rags-to-riches story who transformed his early poverty struggles into a $3.4 billion fortune, according to Forbes. He is currently held in a 1.4-square-metre solitary cell at the Seoul Nambu Detention Centre.

Kim launched South Korea's first online game portal, Hangame, in 1998 before creating KakaoTalk in 2010. The messaging app quickly captured the market and now boasts 48 million monthly active users out of the country's 52 million population. The company's expansion is notable, merging with Daum in 2014 and diversifying into various sectors from payments to transport.

Kakao has proliferated its influence with 124 affiliates and assets worth 86 trillion won ($62 billion). Despite its growth, Kakao has faced scrutiny, particularly following a 2022 data centre fire and during its recent aggressive moves in the entertainment industry. Kim's arrest follows allegations of stock price manipulation, and South Korean prosecutors are investigating several other Kakao affiliates.

(With inputs from agencies.)