On August 8 KST, the Seoul Southern District Prosecutor's Office indicted chairman Kim Beom Soo, founder of Kakao, for violation of the Capital Market Act. Kim will face trial while in detainment.

Kim Beom Soo is facing charges of manipulating the prices of SM Entertainment's stocks in February of 2023, when competitor HYBE Labels issued a tender offer at 120,000 KRW in the bid for acquisition of the entertainment agency. To prevent HYBE labels from acquiring SM Entertainment's stocks, Kim and Kakao conspired with the private equity firm One Asia Partners to mobilize over 240 billion KRW (~ $175 million USD), acquiring numerous SM stocks at a high price and fixing the price of the stocks at above HYBE's tender offer. 

Former Kakao CEOs Hong Eun Taek and Kim Sung Soo, facing the same charges, were also indicted without detainment on this day. 

SEE ALSO: Chef Edward Lee expresses his wish to stay in Korea as his journey comes to an end on 'Edward Lee's Country Cook'