The first trial sentencing for Kim Beom-soo, the founder of Kakao and Chairman of the Management Innovation Committee, who is accused of manipulating the stock price of SM Entertainment, will take place.
The 15th Criminal Division of the Southern District Court of Seoul (Chief Judge Yang Hwan-seung) will hold the sentencing hearing for Chairman Kim, who has been indicted on charges of violating the Capital Markets Act, at 11 AM on the 21st.
Chairman Kim is accused of manipulating the stock price to keep it higher than the public offering price in order to obstruct the public acquisition by rival company HYBE during the process of acquiring SM Entertainment in February 2023.
At the sentencing hearing held in August, the prosecution requested the court to impose a 15-year prison sentence and a fine of 500 million won on Chairman Kim.
The prosecution stated, “The defendant is the head of the Kakao Group and the final decision-maker, and despite being informed of legitimate competitive methods, he continuously opposed them,” adding, “As the final beneficiary of the crime's profits, the likelihood of blame is very high.”
Additionally, for Bae Jae-hyun, the former head of Kakao's investment division, who was indicted on the same charges, the prosecution sought a 12-year prison sentence and a fine of 500 million won, and requested that the companies Kakao and Kakao Entertainment each be fined 500 million won.
At that time, the court stated, “The key issue in this case seems to be the methods and scope of on-market purchases allowed during the public acquisition period,” noting that both the prosecution and the defendant's arguments were persuasive.
It added, “It is very difficult to definitively conclude which side is correct. We will judge the case with a fair standard and perspective that is not biased toward either side.”
[Kim So-yeon, Star Today Reporter]
