Arrest warrant sought for Kakao founder over alleged rigging of SM Entertainment stock price

nme.com:

SM Entertainment stock prices.Today (July 17), Korea Bizwire reported that the Seoul Southern District Prosecutors Office has formally filed for an arrest warrant for Kakao founder Kim Beom-su.

It comes a week after police questioned Kim over his alleged involvement in manipulation of SM Entertainment shares. The K-pop agency is home to popular acts such as aespa, NCT, Red Velvet and more.A verdict on whether Kim is to be arrested has yet to be made.

The court will determine the issuance for the arrest warrant after a hearing, per The Business Times. A spokesperson for the office confirmed that the arrest warrant was requested over charges related to the capital markets law, but denied to comment further.On the other hand, a Kakao spokesperson denied the allegations levied against them in a statement to The Business Times, claiming that no illegal activities transpired during the company’s acquisition of SM shares at the time.The investigation was launched amid suspicions that Kakao and its executives had rigged SM Entertainment’s stock prices in a highly publicised bidding war with South Korean entertainment giant HYBE last year.

The latter is home to acts such as BTS, NewJeans, SEVENTEEN and more.HYBE first acquired a 14.8 per cent stake in SM Entertainment from the latter’s founder, Lee Soo-man.