Overview
- Kakao shares rose about 5% after the verdict, reflecting reduced near-term uncertainty.
- The court found Kakao’s mass SM Entertainment share purchases did not prove price-fixing intent, citing purchase timing that undercut the manipulation claim.
- Judges rejected as false key testimony from a former Kakao Entertainment executive and criticized prosecutors for overreach in the investigation.
- Prosecutors had sought a 15-year prison term and a 500 million-won fine, and an appeal to the Supreme Court is anticipated.
- The acquittal removes an immediate threat to Kakao’s grip on KakaoBank under rules that restrict bank ownership after financial-crime convictions, with Kim holding roughly 24% via affiliated stakes.