Kakao Founder Fully Acquitted of Stock Manipulation Charges

Photo Credit: Kakao founder Kim Beom-su for Korean Broadcasting System (KBS)

Kakao founder Kim Beom-su has been acquitted on charges of stock manipulation in a trial held on October 21.

Kim Beom-su, founder of Kakao Group and head of Kakao’s Future Initiative Center, has been acquitted of all charges in a trial on October 21. The news follows his indictment for alleged conspiracy to manipulate SM Entertainment’s stock prices in violation of the Capital Markets Act.

Kim was found not guilty by Chief Judge Yang Hwan-seung of the 15th Criminal Agreement Division of the Seoul Southern District Court. The court also found Bae Jae-hyun, former chief investment officer for Kakao, not guilty of the same charges. Kakao Corp. and Kakao Entertainment were also acquitted.

“While it is true that Kakao considered acquiring management rights of SM Entertainment, it is difficult to conclude that it was absolutely necessary to acquire it,” the court ruled. “It is difficult to determine that there was a discussion about conspiracy for market price manipulation based solely on the evidence presented by the prosecutor.”

“The buy orders made by Kakao show considerable differences from market price manipulation orders when considering the time intervals and purchase methods,” the court added. “It is difficult to conclude that there was an intention to artificially manipulate the market price and fix it at a higher level compared to normal market prices.”

“I sincerely thank the court for carefully reviewing the materials over a long period and reaching this conclusion,” said Kim. “I hope this will serve as an opportunity to somewhat escape the shadow of stock price manipulation and market price rigging that has been cast over Kakao.”

Meanwhile, Kakao released its own statement: “Kakao has been misunderstood as an unethical company that manipulated stock prices. We understand that the first trial’s not guilty verdict confirms that such misunderstanding was inappropriate.”

The company also added that Kakao Group has “faced various difficulties during the two years and eight months of investigation and trial.” Kakao vows to “strive harder to make up for this and fulfill our given social mission.”

Link to the source article – https://www.digitalmusicnews.com/2025/10/23/kakao-founder-fully-acquitted/