Kakao Corp. founder Kim Beom-su speaks to reporters after a court acquitted him of stock manipulation charges at the Seoul Southern District Court in Seoul on Oct. 21, 2025. (Yonhap)
SEOUL, Oct. 21 (Korea Bizwire) — A Seoul court on Tuesday acquitted Kim Beom-su, founder of tech giant Kakao Corp., of charges that he manipulated stock prices during the company’s high-profile takeover battle for K-pop powerhouse SM Entertainment, ending a nearly three-year legal saga that had clouded the firm’s reputation.
The Seoul Southern District Court found Kim not guilty of violating capital market laws, ruling that prosecutors had failed to prove Kakao inflated SM’s share prices to block a rival bid by Hybe Co., the parent company of BTS’s label BigHit Music.
“We express our gratitude for the court’s judicious ruling,” Kakao said in a statement. “The company has long been misunderstood as an unethical firm that manipulated stock prices. The court’s decision confirms that such perceptions were unfounded.”
Kakao said it now aims to regain momentum in the fast-evolving artificial intelligence (AI) sector after what it described as a period of “lost time” during the lengthy probe. “We will work hard to make up for the time we lost and to fulfill our social mission,” the company said.
This undated file photo provided by Kakao Pay Corp. shows its headquarters in Pangyo, south of Seoul.
Kim, who currently heads Kakao’s Future Initiative Center, also thanked the court for what he called an opportunity to “restore trust and move forward.”
The case stemmed from a bitter 2023 battle between Kakao and Hybe for control of SM Entertainment, home to top artists such as EXO, Super Junior and aespa. Hybe eventually withdrew its bid after SM’s share prices spiked, clearing the way for Kakao’s takeover.
Since the investigation began, Kakao has sought to rebuild its image through corporate restructuring and a sharper strategic focus. The company has reduced its number of affiliates by about 30 percent to 99 over the past 18 months and accelerated its pivot toward AI technologies.
Kakao has partnered with OpenAI to integrate ChatGPT into its popular messaging app KakaoTalk, part of a broader effort to reposition itself at the forefront of South Korea’s digital innovation push.
Kevin Lee (kevinlee@koreabizwire.com)
