Kakao Founder Faces 15-Year Sentence Over Stock Manipulation Allegations

South Korean prosecutors have requested a 15-year prison sentence for Kakao founder Kim Beom-su on charges of stock manipulation during the acquisition of a K-Pop agency. Kim, who denies the allegations, is accused of meddling in SM Entertainment’s stock to prevent its acquisition by a rival company.

On Friday, South Korean prosecutors sought a 15-year jail sentence for Kakao founder Kim Beom-su, also known as Brian Kim, on charges of manipulating stock prices. The allegations revolve around Kim's involvement in the acquisition of a K-Pop agency, where he is accused of inflating stock prices to obstruct a rival company.

Despite being arrested and released on bail last year, Kim maintains his innocence and denies any illegal activities. The accusations focus on stock manipulation of SM Entertainment in 2023, allegedly aimed at preventing Hybe from acquiring it.

Prosecutors have also called for a financial penalty of 500 million won ($360,192). With a ruling pending, the Seoul Southern District Court has refrained from making any public comments. Kim is recognized as a pioneer in South Korea's digital sphere, having built Kakao's vast network from his initial launch of the KakaoTalk app in 2010.

(With inputs from agencies.)