Kakao Founder Charged With Stock Manipulation in Landmark Case

Prosecutors will lay out charges against Kakao founder Kim
The case has enthralled Korea’s internet and business sectors

Brian Kim, center right, arrives at the Seoul Southern District Court in Seoul on July 22.Photographer: SeongJoon Cho/Bloomberg

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By Shinhye Kang and Jenny Seung Min Lee

August 8, 2024 at 2:20 AM UTC

Updated on

August 8, 2024 at 4:28 AM UTC

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South Korean prosecutors have indicted Kakao Corp. founder Brian Kim on charges of stock manipulation, kicking off a watershed case that’s transfixed South Korea’s young internet industry.

Prosecutors formally charged the entrepreneur with market violations during his company’s takeover battle for SM Entertainment Co., Yonhap News reported Thursday. Kim was allegedly involved with an attempt to buy and push SM stock above a rival offer of 120,000 won ($87) from BTS-agency Hybe Co. Executives carried out that alleged maneuver over a total of four days, in mid-February 2023 as well as later that month, Yonhap said, citing prosecutors.