South Korean billionaire arrested for alleged share price manipulation

The founder of the South Korean tech company, Kakao, was arrested on Tuesday for alleged manipulation of share prices.

The country’s media reports that a district court in Seoul issued the arrest warrant for Kim Beom Su.

The decision was justified by the risk that the 58-year-old entrepreneur could flee or destroy possible evidence.

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Kim and his company’s management are suspected of artificially inflating the share prices of the Korean music label SM Entertainment during a bidding war to prevent its takeover by a competitor in February last year.

Kim’s company Kakao became the main shareholder in SM Entertainment in March 2023.

Kim’s arrest is initially limited to 20 days, during which the public prosecutor’s office is expected to conduct further investigations and file formal charges.

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