Kakao Founder Kim Beom-su Faces Trial for Alleged Misconduct

Kim Beom-su, the founder and chairman of Kakao, is currently facing trial in Seoul for alleged stock manipulation. This legal battle began after a conflict with HYBE, the company managing the popular boyband BTS, regarding a potential acquisition of SM Entertainment. Prosecutors have accused Kim and his executives of inflating SM Entertainment's stock price by purchasing shares worth 240 billion won ($180 million) through 553 transactions to obstruct HYBE's takeover efforts. On September 11, 2024, the first day of the trial, Kim's lawyer defended the transactions as legitimate, asserting that there was no illegal activity ordered or tolerated by Kim. Kakao has maintained that the actions taken were within legal boundaries, emphasizing the legitimacy of their business practices. The case raises questions about the influence of powerful figures in the tech industry and whether they can evade accountability for their actions. As the trial unfolds, observers are left to ponder if Kim Beom-su will be perceived as “too big to jail,” a phrase that reflects concerns about the potential for elite individuals to escape legal repercussions. The outcome of this trial could have significant implications for corporate governance and regulatory practices in South Korea, particularly in the tech and entertainment sectors. It may also influence public perception of corporate ethics and the responsibilities of business leaders in maintaining fair market practices.