Seoul: Prosecutors have called for a 15-year prison sentence for Kim Beom-su, the founder of Kakao Corp., on charges of stock manipulation linked to the company's acquisition attempt of K-pop agency SM Entertainment. During Kim's final trial at the Seoul Southern District Court, prosecutors also requested a fine of 500 million won (approximately US$360,000).
According to Yonhap News Agency, the prosecution argued that Kim was the ultimate beneficiary of "criminal proceeds" and that he persistently opposed legal competition in the battle to take over SM Entertainment. Kim, who currently serves as the chairman of Kakao's Management Innovation Committee, is accused of artificially inflating SM's share prices beyond the tender offer price of 120,000 won proposed by rival Hybe in 2023 to thwart Hybe's takeover efforts.
In his defense, Kim denied the allegations during his testimony. He asserted that he had never devised any plan to gain profit illegally while managing Kakao. Kim also pledged to enhance the company's compliance measures and social responsibility in light of the incident.