The founder of South Korean tech company Kakao, Kim Beom Su, was arrested on Tuesday on charges of manipulating share prices.
A district court in Seoul issued the arrest warrant, citing concerns that the 58-year-old entrepreneur might flee or destroy potential evidence, according to South Korean news agency Yonhap.
Kim and his company’s management are suspected of artificially inflating the share prices of Korean music label SM Entertainment in February of last year during a bidding war to prevent a takeover by a competitor.
In March 2023, Kakao became the main shareholder in SM Entertainment.
Kim’s arrest is initially limited to 20 days, during which the public prosecutor’s office is expected to conduct further investigations and file formal charges.
With his internet empire Kakao, founded in 2010, Kim is considered one of the most successful and wealthy businesspeople in the country. His group of companies is best known for the messenger service KakaoTalk, the most popular chat app in South Korea.
