South Korean court considers arrest warrant for Kakao founder
Brian Kim, the largest shareholder of Kakao Corp, awaits a court decision on his arrest warrant.
A South Korean court is reviewing a prosecution request to arrest Brian Kim, the billionaire founder of Kakao Corp, for alleged stock manipulation during a 2023 acquisition. The development follows a hearing last year involving Kakao and an executive over similar accusations. Prosecutors claim Kim manipulated the stock price of SM Entertainment to obstruct Hybe’s acquisition attempt. Kim, not formally charged, denies any wrongdoing.
Kim, the largest shareholder of Kakao Corp, holds a 24% stake through his entities. The court’s decision, expected late Monday or early Tuesday, will determine the necessity of a warrant without ruling on the allegations. Analysts warn that a conviction could jeopardise Kakao group’s control over KakaoBank Corp, as financial crime rules restrict ownership stakes in banks.
Regulatory and social scrutiny might impact Kakao’s bold investment decisions, including plans for AI services and fundraising through IPOs. Kim chairs a council coordinating Kakao group’s 128 affiliates, guiding their business focus. The outcome of the case could influence the company’s strategic moves in the near future.
Kakao plans to launch new AI services this year, amid growing challenges from legal and regulatory pressures. The decision on Kim’s arrest warrant will be crucial for the future direction of the tech giant and its numerous affiliates.
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