Kakao Corp Founder Kim Beom-su Arrested Over Stock Manipulation Allegations

Bollywood Fever: South Korean authorities arrested Kim Beom-su, the billionaire founder of tech giant Kakao Corp, on Tuesday, accusing him of stock manipulation during the acquisition of a K-Pop agency last year.

Key Facts about Kim Beom-su and Kakao Corp:

  • Founder Background: Known as Brian Kim, Kim Beom-su is a rags-to-riches visionary. He grew up in poverty, sharing a single room with seven family members. Now, at 58 years old, he has a net worth of about $3.4 billion, according to Forbes.
  • Current Detainment: Kim is currently held in a solitary cell, 1.4 square meters (15 square feet) in size, at Seoul Nambu Detention Centre, as reported by South Korean media.
  • Early Ventures: Kim founded South Korea’s first online game portal, Hangame, in 1998. He and his partners launched the KakaoTalk app in 2010, which quickly became the dominant chat platform in South Korea, with 48 million monthly active users as of Q1 2024 and a 93% penetration rate among the country’s 52 million population.
  • Expansion: KakaoTalk’s success allowed the company to expand into advertising, games, music streaming, entertainment, shopping, payments, online banking, and transport. The number of Kakao affiliates grew from 26 in 2014 to 124 in 2024.
  • Valuation and IPOs: Kakao’s group of affiliates are valued at 86 trillion won ($62 billion) by assets, according to South Korea’s Fair Trade Commission. The company has listed several subsidiaries, including Kakao Games in 2020, KakaoBank and KakaoPay in 2021.
  • Market Dominance: Kakao’s mobility unit holds over 90% of South Korea’s taxi-hailing market. In November 2023, President Yoon Suk Yeol called for a review of the service’s monopolistic nature.
  • Challenges: A data center fire in October 2022 disrupted KakaoTalk and related services, raising public concern over reliance on the app. In March 2023, Kakao Corp and affiliate Kakao Entertainment won a takeover battle against Hybe to acquire SM Entertainment, backed by a 1.2 trillion won investment from Saudi Arabia’s Public Investment Fund and Singapore’s GIC.
Kakao Corp Founder Kim Beom-su Arrested Over Stock Manipulation Allegations

Legal Troubles:

  • Kim’s arrest is linked to a probe into potential illegal activities during Kakao’s takeover process of SM Entertainment. In late 2023, South Korean prosecutors charged an executive with allegedly manipulating SM’s stock price to block Hybe’s acquisition attempts, involving approximately 240 billion won ($173.24 million) in stock purchases.
  • Prosecutors are investigating Kakao affiliates in at least four other matters, as reported by local media.

Reckitt’s shares have declined by about 19% this year.


Also Read other news articles, Reckitt Pressured to Sell Mead Johnson Nutrition Amid Legal Challenges

NYSE Approves Bitwise and Grayscale ETH ETFs, Trading Expected to Begin

Barclays Seeks to Halve Shareholders’ $720 Million Lawsuit Over Dark Pool Trading Scandal

Nicholas Edwards
Nicholas Edwards

Nicholas Edwards is a passionate writer with a keen interest in sports and business news. With a knack for delivering insightful and engaging content, Nicholas keeps his finger on the pulse of the latest developments in these dynamic fields. His enthusiasm for both sports and business shines through in his writing, making complex topics accessible to a wide audience. Whether it's dissecting the latest game-changing play or analyzing market trends, Nicholas brings a fresh perspective and a wealth of knowledge to his articles. Email @ admin@bollywoodfever.co.in

Articles: 710

Leave a Reply

Your email address will not be published. Required fields are marked *