South Korean Tech Billionaire is in Custody for Investigation
Kim Beom-su is successful and wealthy. His messaging service Kakao Talk is the most popular chat app in South Korea. The prosecution accuses the founder of the South Korean tech empire Kakao, Kim Beom-su, of manipulating stock prices.
The founder of the South Korean tech company Kakao, Kim Beom-su, was arrested on charges of stock price manipulation. According to South Korea's official news agency Yonhap, a district court in Seoul issued an arrest warrant against the 58-year-old entrepreneur. The decision was based on the risk that the suspect could flee or destroy potential evidence.
Kim is suspected of colluding with his company's management in February of last year during a bidding war to artificially inflate the stock prices of the South Korean music label SM Entertainment, preventing a competitor from acquiring it. A month later, in March 2023, Kakao finally became the largest shareholder of SM Entertainment itself.
Kim Beom-su's arrest is currently limited to 20 days. During this period, the prosecution is expected to conduct further investigations and file a formal indictment. Kim founded his internet empire Kakao in 2010 and is one of the most successful and wealthy businessmen in the country. His conglomerate is best known for its messaging service Kakao Talk, which is the most popular chat app in South Korea.
The arrest of Kim Beom-su, the founder of Kakao, a prominent technology company in South Korea, has raised concerns about criminality in the tech sector. This incident has also led to discussions about the impact on the South Korean stock exchange and the broader economy.
