Prosecutors have requested a 15-year jail sentence for Kim Beom-su, the founding father of South Korean tech large Kakao Corp., over his alleged function in an effort to govern SM Leisure’s inventory worth throughout a bidding battle in opposition to Okay-pop large HYBE.
Kim was arrested and indicted final yr. Prosecutors alleged he coordinated a scheme in February 2023 to bid up the inventory worth of SM Leisure above the 120,000 received per share that HYBE had supplied in its bid for SM.
Prosecutors say the scheme concerned funneling some KRW 240 billion ($172 million on the present change charge) throughout greater than 300 particular person transactions, inflicting SM Leisure inventory to rise dramatically.
Round that point, SM’s shares briefly spiked from round KRW 75,000 per share to greater than KRW 147,000, earlier than falling again down once more. HYBE’s provide to purchase SM, a rival Okay-pop firm, fell via and Kakao Corp. tabled its personal bid. Kakao finally emerged because the winner within the bidding battle, taking a 39.9% stake in SM Leisure.
Prosecutors made the request for the 15-year jail sentence throughout closing arguments in Kim’s trial on the Seoul Southern District Courtroom on Friday (August 29). Additionally they requested that Kim pay a advantageous of KRW 500 million ($359,000).
In line with Korea JoongAng Every day, prosecutors additionally requested for a 12-year sentence for former Kakao chief funding officer Bae Jae-hyun, and seven-year jail phrases for Kim Sung-soo, CEO of subsidiary Kakao Leisure, in addition to former Kakao CEO Hong Eun-taek, former Kakao funding technique head Kang Ho-jung and One Asia Companions President Kim Tae-young.
One Asia Companions is a non-public fairness fund administration agency with hyperlinks to Kakao that prosecutors allege was concerned within the scheme.
“Kim permitted the manipulation of SM Leisure’s inventory worth via on-market purchases as a way to conceal Kakao Corp.’s intention to accumulate SM and block Hybe’s tender provide, and subsequently bears the best duty,” prosecutors mentioned, as quoted by The Korea Herald.
“Because the de facto head of the Kakao Group, he was the final word beneficiary of the scheme.”
Prosecutors within the legal trial of Kim Beom-su
“Because the de facto head of the Kakao Group, he was the final word beneficiary of the scheme,” they mentioned. “He repeatedly instructed his executives to pursue SM’s acquisition ‘peacefully,’ permitted inventory manipulation measures and orchestrated the crime in a calculated method.”
Though Kakao Corp. is at the moment led by CEO Chung Shin-a, who additionally heads its Company Alignment Council, Kim stays the corporate’s largest shareholder with a 24.12% stake, in line with The Korea Occasions.
Kim’s attorneys rejected the allegations, calling them “an extreme stretch by prosecutors” and asserted the inventory purchases have been official.
“The purchases weren’t made to dam HYBE’s tender provide,” Kim instructed the court docket, as quoted by JoongAng Every day. “Quite, we anticipated a worth surge in SM shares if HYBE’s bid failed.”
“At no level did the defendant think about using unlawful means corresponding to inventory manipulation to accumulate SM,” an legal professional for Kim said. “He had no reference to One Asia Companions on this matter.”
A verdict within the case is anticipated within the coming weeks, Bloomberg reported.Music Enterprise Worldwide
