Kakao Founder Arrested for Alleged Stock Manipulation in K-Pop Acquisition

Kim Beom-su, founder of Kakao Corp., is accused of inflating SM Entertainment's stock price to thwart a rival's takeover bid.

Kim Beom-su was arrested following a Seoul court's approval of an arrest warrant citing flight risk and evidence destruction concerns.
The allegations involve manipulating SM Entertainment's stock to prevent Hybe Corp. from acquiring the K-pop agency.
Kim denies the accusations, claiming no involvement in illegal activities during the acquisition process.
Kakao's stock dropped over 5% following the news of Kim's arrest, impacting the company's market value.
The case could jeopardize Kakao's future expansions, including its investments in artificial intelligence and overseas ventures.