South Korean Prosecutors Seek Arrest Warrant for Kakao Founder Brian Kim

In a surprising development, South Korean prosecutors are pursuing an arrest warrant for Brian Kim, the billionaire founder of Kakao Corp., amid an investigation into alleged stock market manipulation. The Seoul Southern District prosecutors’ office is focusing on potential price-rigging activities linked to a bidding war for SM Entertainment Co. that occurred in 2023. A spokesperson for the prosecutors confirmed the request for a warrant, citing violations of capital markets law, but refrained from providing additional details. The court is set to evaluate the request for the arrest warrant following a hearing, which will determine the next steps in the legal proceedings. This move marks a significant escalation in the investigation, which has drawn attention due to Kim's high-profile status in the South Korean tech industry. In response to the allegations, a spokesperson for Kakao has firmly denied any wrongdoing, asserting that no illegal activities were involved in the acquisition of SM Entertainment. The company has indicated that it will provide further clarification during the upcoming court hearing, aiming to address the concerns raised by the prosecutors. Following the announcement of the warrant request, Kakao's stock experienced a decline, dropping as much as 0.9% to 40,550 won ($29). The situation continues to unfold, with stakeholders closely monitoring the legal developments surrounding one of South Korea's most prominent entrepreneurs.