SEOUL, May 13 (AJP) - A South Korean court has summoned Bang Si-hyuk, the chairman of Hybe and the creator behind K-pop wonder BTS, to testify as a witness in the ongoing trial of Kakao founder Kim Beom-su over alleged stock manipulation tied to Kakao’s 2023 acquisition of SM Entertainment.
According to legal sources on Tuesday, the Seoul Southern District Court issued a subpoena to Bang on May 8. Unless he provides a valid reason for absence, Bang is required to appear in court on June 20.
The case centers on charges that Kim conspired with private equity firm One Asia Partners to inflate SM Entertainment’s stock price in February 2023, in order to block Hybe’s public tender offer for control of the iconic K-pop powerhouse.
Hybe had acquired a 14.8 percent stake in SM from its founder Lee Soo-man and launched a public tender offer at 120,000 won ($84.8) per share to gain majority control. However, SM’s stock price surged above that level, leading Hybe to abandon its takeover attempt.
Prosecutors argue that Kim, who was then leading Kakao’s efforts to acquire SM Entertainment, manipulated the market to keep SM shares above the offer price, thereby disrupting Hybe’s acquisition attempt. Kim is also accused of failing to properly disclose his stake in SM, violating financial market regulations.
The prosecution believes Bang and Kim met on February 14, 2023, to discuss the SM acquisition. Bang reportedly asked Kim not to pursue control of the company, but Kim allegedly refused, signaling Kakao’s intent to push ahead with its takeover.
Kakao eventually took control of SM by acquiring a 39.87 percent stake through Kakao and Kakao Entertainment, cementing its influence over the agency.
Kim was arrested in July 2024 on charges of stock manipulation and violating disclosure requirements. His arrest was based on concerns that he might destroy evidence or flee the country.
reporter
Park Sae-jin
swatchsjp@ajunews.com
Copyright ⓒ Aju Press All rights reserved.
View more comments