Prosecutors Seek Maximum Sentence for Kim Beom-soo…Request 15 Years Imprisonment and 500 Million Won Fine

[Dispatch=Reporter Lee Myung-ju] Kim Beom-su, founder of Kakao, received a sentence recommendation for a serious punishment in the appeals court as well.

The Criminal Division 4-1 of the Seoul High Court (Judges Kim In-kyung, Sung Ji-yong, Jeon Ji-won) held an appellate deliberation hearing on the 23rd for founder Kim and others who were sent to trial on charges of violating the Capital Markets Act.

The prosecution recommended a 15-year prison sentence and a fine of 510 million won for founder Kim. This is the maximum sentence for violating the Capital Markets Act and is identical to the recommendation in the first trial.

Bae Jae-hyun, former head of Kakao's investment division, received a recommendation of 12 years in prison and a fine of 510 million won. Kakao Corporation and Kakao Entertainment each received a recommendation of a 500 million won fine.

Founder Kim and others are accused of manipulating stock prices during the acquisition of SM Entertainment in 2023. The allegation is that they raised the stock price higher than HIVE's public acquisition price to interfere with HIVE's public acquisition.

The first trial acquitted founder Kim and others. The court determined that Kakao's large-scale in-market purchases during the relevant period that affected SM Entertainment's stock price cannot be considered stock price manipulation.

The prosecution appealed against the first trial ruling. It believed the court did not consider multiple pieces of evidence that could prove the criminal facts of founder Kim and others.