Kakao Founder Brian Kim Arrested

South Korean authorities have arrested Brian Kim, founder of Kakao Corp., over allegations of market manipulation during the high-profile takeover of K-pop agency SM Entertainment Co. in 2023. The Seoul Southern District Court cited 'concerns of evidence destruction and flight' in its decision to detain the 58-year-old entrepreneur. Financial regulators allege that executives at Kakao and its unit Kakao Entertainment Corp. bought 240 billion won ($173 million) in shares of SM to disrupt a competing offer from Hybe Co. This arrest marks a significant event for Kakao, a leading technology conglomerate, and raises questions about the future of innovative tech firms in South Korea. Shares in Kakao fell, while shares in KakaoBank surged following the news. Kim and Kakao representatives have consistently denied the accusations, asserting no illegal activities occurred during the acquisition.