Brian Kim: Korean prosecutors demand arrest of billionaire and Kakao founder

SSouth Korean prosecutors are seeking an arrest warrant for billionaire Kakao Corp. founder Brian Kim, a surprise twist in their ongoing investigation into alleged stock market manipulation.

The Seoul Southern District Prosecutors’ Office is seeking to arrest the celebrated entrepreneur after launching an investigation into alleged price-fixing that took place during a bidding war for SM Entertainment Co. in 2023. A spokesman for the prosecutor’s office confirmed that it had applied to the court to issue an arrest warrant on charges related to the Capital Markets Act, but declined further comment.

The court decides on the issuance of the arrest warrant after a hearing.

A Kakao spokesperson denied the allegations and said that no illegal activities occurred during the SM acquisition, adding that further explanations would be given during the court hearing.

The company’s shares fell as much as 0.9 percent to 40,550 won ($29).

Kakao, the Korean internet conglomerate founded by Kim, acquired a majority stake in SM after a bitter bidding war with Hybe Co., the label behind boy band sensation BTS. Financial regulators have accused executives at Kakao and Kakao Entertainment Corp. of buying 240 billion won worth of SM shares to block Hybe’s bid.