Korea court to deliver ruling on Kakao founder Oct. 21: News1

Korea court to deliver ruling on Kakao founder Oct. 21: News1

Seoul, South Korea - The Seoul Southern District Court's Criminal Agreement Division 15 is expected to deliver its ruling on the high-profile stock manipulation case involving Kakao founder Kim Beom Su and six other defendants on October 21. The ruling will determine the fate of Kim and his co-defendants, who are accused of violating the Capital Markets Act during Kakao Group's acquisition battle for SM Entertainment.

The case, which began with Kim's detention last August, centers around allegations that Kim and his associates manipulated SM Entertainment's stock price to block rival HYBE's tender offer. Prosecutors have sought a 15-year prison term and a fine of 500 million KRW (approx. $370,000) for Kim, arguing that he authorized market-rigging schemes to conceal Kakao’s acquisition intentions. Other defendants, including former Kakao chief investment officer Bae, CEO of Oneasia Partners Ji Chang Bae, and former Kakao Entertainment CEO Kim Sung Su, face sentences ranging from 7 to 12 years [1].

The court's decision is anticipated to have significant implications for the Korean tech and entertainment industries. Kim, as Kakao's largest shareholder, stands to benefit financially from the acquisition, making him the most culpable figure in the case. Prosecutors have also sought fines of 500 million KRW each for Kakao Corp. and Kakao Entertainment [1].

Meanwhile, in a separate case, the Seoul Western District Court has recognized KakaoTalk conversations as admissible evidence in the damages lawsuit between Source Music and former ADOR CEO Min Hee Jin. The court dismissed Min Hee Jin's argument that the KakaoTalk messages were unlawfully obtained, ruling that they would be admitted as evidence [2].

The court's decision in the Kakao founder case is expected to provide clarity on the legal and ethical standards for corporate acquisitions and market manipulation in South Korea.

References:
[1] https://www.allkpop.com/article/2025/08/prosecutors-seek-15-year-prison-term-for-kakao-founder-kim-beom-su-over-sm-entertainment-stock-manipulation-case
[2] https://www.allkpop.com/article/2025/08/the-court-recognizes-min-hee-jins-kakaotalk-messages-as-evidence