Kakao founder issued arrest warrant by Seoul courtroom

A Seoul courtroom issued an arrest warrant for Brian Kim, the founding father of South Korean web big Kakao, on allegations of inventory value manipulation associated to the corporate’s takeover of Okay-pop company SM Leisure in 2023.

The Seoul Southern District Court docket stated on Tuesday that it had issued a warrant for Kim’s arrest after a listening to on Monday resulting from “considerations of proof destruction and flight.”

He could possibly be jailed for as much as 20 days as prosecutors examine additional earlier than bringing fees. This might probably disrupt Kakao’s operations and plans round AI, because the founder has been a key determine within the firm’s strategic selections.

A spokesperson at Kakao instructed TechCrunch that the agency would do all it may to reduce the administration hole with its co-chairs and council.

Kim is going through accusations that he was concerned in manipulating SM Leisure’s share value throughout a bidding struggle for that firm in 2023. Kakao was competing with Hybe, the proprietor of South Korean music company BigHit, which is behind Okay-pop boyband BTS.

Kakao is reportedly accused of buying KRW 240 billion (~ $174 million) of SM Leisure’s shares over 553 trades in February 2023. That allegedly drove the corporate’s share value above Hybe’s tender provide value of 120,000 KRW per share, which brought about Hybe to withdraw its provide.

Kakao stated in an announcement final week that the allegations should not true, as Kim had by no means ordered or tolerated any unlawful actions. 

Kakao’s chief funding officer, Jae-Hyun Bae, was arrested final October following allegations of inventory value manipulation after the takeover. He’s at present on trial.

Kakao, based in 2006, launched South Korea’s hottest messaging app, KakaoTalk, in 2010. It grew to become the nation’s Tremendous App and now presents an array of companies, together with on-demand taxi service Kakao Mobility, on-line banking platform Kakao Financial institution, and music streaming service Melon. From 2011 to 2022, Kakao accomplished 13 acquisitions, with a median acquisition quantity of $546 million, in accordance with Tracxn.