Kakao’s billionaire founder arrested for alleged stock manipulation in K-pop deal

Kim Beom-su, the billionaire founder of South Korean tech giant Kakao Corp., was arrested on Tuesday for allegedly manipulating stocks during the acquisition of SM Entertainment — the label behind acts such as Aespa, NCT and Red Velvet — last year.

Prosecutors claim Kim, also known as Brian Kim, hindered competitor Hybe — which manages BTS, Seventeen and Le Sserafim — from acquiring the K-pop agency by manipulating its stock price. Kim, who denies the accusation, is being held at the Seoul Nambu Detention Centre and has not been formally charged. His arrest has led to a significant drop in Kakao’s share value.