Overview
- Kakao founder Kim Beom-su, Kakao Corp., Kakao Entertainment and former CIO Bae Jae-hyun were found not guilty of Capital Markets Act violations.
- The bench said Kakao’s SM share purchases did not demonstrate intent to fix prices and rejected key witness Lee Joon-ho’s testimony as false, criticizing excessive investigations.
- Prosecutors had sought a 15-year prison term and a 500 million-won fine for Kim over alleged 2023 trading during a takeover battle with Hybe.
- Kakao shares rose roughly 5–7% intraday after the ruling, reducing concerns about potential limits on KakaoBank ownership under financial-crime rules.
- Kakao welcomed the verdict and pledged to rebuild trust and refocus on growth priorities such as artificial intelligence, while prosecutors retain the right to appeal.