sSouth Korean prosecutors are seeking an arrest warrant for billionaire Kakao Corp. founder Brian Kim, a surprising twist in their ongoing investigation into alleged stock market manipulation.
The Seoul Southern District Prosecutor’s Office is seeking to detain the celebrated businessman after conducting an investigation into alleged price fraud that occurred during a bidding war for SM Entertainment Co. in 2023. A spokesperson for the office confirmed that it has asked the courts to issue an arrest warrant on charges related to capital markets law, but declined to comment further.
The court will determine whether to issue the warrant after a hearing.
Kakao’s spokesperson denied the allegation and said no illegal activities occurred during the SM acquisition, adding that a further explanation would be provided during the hearing.
The company’s shares fell as much as 0.9% to 40,550 won ($29).
Kakao, the Korean internet leader created by Kim, won a controlling stake in SM after an intense bidding battle with Hybe Co., the record label behind boyband sensation BTS. Financial regulators have accused executives of Kakao and Kakao Entertainment Corp. to buy 240 billion won worth of SM shares in an attempt to stop Hybe’s bid.
This story originally appeared on Time.com read the full story
