(Bloomberg) — South Korean prosecutors are seeking an arrest warrant for billionaire Kakao Corp. founder Brian Kim, a surprising twist in the ongoing investigation into alleged stock market manipulation.
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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.
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 ($174 million) worth of SM shares in an attempt to disrupt Hybe’s bid.
Kakao representatives did not immediately respond to requests for comment.
–With assistance from Liau Y-Sing, Yoolim Lee and Jenny Lee.
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