Kakao Founder Indicted for Stock Manipulation Amidst Financial Gains

Kim Beom-su, founder of South Korean tech giant Kakao Corp, faces charges of stock market manipulation. Arrested last month, he is accused of influencing SM Entertainment's stock prices to hinder competitor Hybe. Kakao's Q2 operating profit rose despite legal issues, indicating strong business performance.

South Korean prosecutors have indicted Kim Beom-su, the billionaire founder of tech giant Kakao Corp, on charges of stock market manipulation, as reported by Yonhap news agency on Thursday.

Kim, also known as Brian Kim, was apprehended last month and has since been detained. He is renowned for revolutionizing South Korea's digital landscape by founding Kakao and developing a group of affiliates with assets valued at $62 billion.

The prosecution alleges that Kim manipulated the stock price of SM Entertainment last February to block competitor Hybe from acquiring it. Kim denies any wrongdoing, insisting he never engaged in illegal activities.

Despite the ongoing legal challenges, Kakao has reported a Q2 operating profit of 134 billion won, marking an 18.5% increase from the previous year. CEO Shina Chung assured shareholders during a post-earnings call that the company is committed to providing seamless services.

Former Kakao CEO Hong Eun-taek and former Kakao Entertainment CEO Kim Sung-soo have also been indicted but are not in custody, according to Yonhap. ($1 = 1,378.0900 won)

(With inputs from agencies.)