The Seoul Southern District Court ruled that prosecutors had failed to prove that Kim conspired to manipulate SM Entertainment’s stock price during Kakao’s contested acquisition fight with Hybe, another major K-pop agency, in early 2023. Former Kakao investment chief Bae Jae-hyun and Kakao Entertainment were also cleared of all charges.
“While Kakao considered acquiring SM Entertainment’s management rights, it is difficult to conclude this was an imperative situation,” presiding judge Yang Hwan-seung said in the ruling. “The evidence presented by prosecutors is insufficient to establish that discussions of market manipulation conspiracy took place.”
Prosecutors had argued that Kim directed subordinates to place strategic buy orders designed to keep SM’s share price above Hybe’s tender offer, effectively preventing the rival from gaining control.
But the court found that Kakao’s trading activity differed “considerably” from typical manipulative patterns in both timing and execution, concluding there was no intent to artificially maintain prices.
After the verdict, Kim expressed relief, saying he hoped the decision would allow Kakao to “emerge from the shadow of stock manipulation allegations that have hung over the company.” Prosecutors said they would review the ruling before deciding whether to appeal.
Kakao shares rose 3.9 percent to 61,100 won as of 1:24 p.m. following the decision.
reporter
Kim Dong-young
davekim0807@ajupress.com
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