Photo: finance.yahoo.com
Kakao's Founder Exonerated of Stock Manipulation, Shares Surge 5%
Kakaos founder Kim Beom-su was acquitted of market manipulation charges, leading to a 5% surge in the companys shares, reflecting investor confidence in South Koreas tech sector.
- A South Korean court in Seoul exonerated Kakao founder Kim Beom-su on market manipulation charges related to SM Entertainment, significantly boosting investor sentiment.
- Kim Beom-su was arrested in July 2023 for allegedly manipulating SM Entertainments stock price to obstruct Hybe Corporations acquisition efforts, but was released on bail in October 2024.
- Following the acquittal, Kakaos shares rose by 5%, indicating a positive market reaction to the resolution of the legal issues surrounding the companys leadership.
Why It Matters
The acquittal of Kim Beom-su is significant as it underscores the ongoing scrutiny of corporate governance in South Koreas technology sector and may influence future investor confidence in Kakao and similar firms.