Court Clears Kakao Founder of Stock Manipulation, Shares Surge

A South Korean court acquitted Kakao Corp's founder, Kim Beom-su, of stock manipulation charges, triggering a 5% rise in the company's shares. Kim's case could have impacted KakaoBank ownership due to financial crime regulations. The ruling is seen as reducing legal risks despite a possible Supreme Court appeal.

In a significant legal victory, South Korean tech magnate Kim Beom-su, founder of Kakao Corp, was acquitted of stock manipulation charges on Tuesday. The allegations had centered around the manipulation of SM Entertainment's stock to hinder rival Hybe from acquisition attempts.

The court's decision catalyzed a 5% increase in Kakao's stock value, underscoring investor relief. Kim, who faced a possible 15-year sentence and hefty fine, expressed gratitude for the ruling, hopeful it will help Kakao alleviate the shadow of market manipulation allegations.

While the case may proceed to the Supreme Court, the current ruling eases some legal uncertainties for Kakao. The outcome could have affected KakaoBank's ownership due to financial crime restrictions under South Korean law, as Kim holds a significant stake in Kakao Corp.

(With inputs from agencies.)