{"id":59479,"date":"2023-11-13T21:03:06","date_gmt":"2023-11-14T02:03:06","guid":{"rendered":"https:\/\/www.cyberlego.com\/web\/2023\/11\/13\/kakao-executive-company-indicted-for-alleged-sm-entertainment-stock-manipulation-scheme-report\/"},"modified":"2023-11-13T21:03:06","modified_gmt":"2023-11-14T02:03:06","slug":"kakao-executive-company-indicted-for-alleged-sm-entertainment-stock-manipulation-scheme-report","status":"publish","type":"post","link":"https:\/\/www.cyberlego.com\/web\/2023\/11\/13\/kakao-executive-company-indicted-for-alleged-sm-entertainment-stock-manipulation-scheme-report\/","title":{"rendered":"Kakao Executive, Company Indicted for Alleged SM Entertainment Stock Manipulation Scheme\u00a0(Report)"},"content":{"rendered":"

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\n\tIn a stunning wrinkle in the fevered battle between Kakao Corp. and HYBE for a controlling stake in K-pop company SM Entertainment, Kakao\u2019s chief investment officer was indicted Monday (Nov. 13) for allegedly manipulating the stock price to ward off HYBE\u2019s rival bid.<\/p>\n

\n\tBae Jae-hyun<\/strong>, Kakao\u2019s chief investment officer, will face a trial for violating South Korea\u2019s Capital Markets Act, according to reports<\/a>. He allegedly inflated the price of SM Entertainment shares by purchasing 240 billion won ($181.3 million) of shares while HYBE, home of K-pop group BTS, was attempting to buy a large stake in the company. Prosecutors also charged Kakao using a provision in the law that allows both a company and its employees to be punished.<\/p>\n

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\t\t\t\t\tSM Entertainment and Kakao Launch Joint Division in North\u00a0America\t\t<\/p>\n<\/h3><\/div>\n

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\n\tThe scheme to manipulate SM Entertainment\u2019s share price stemmed from a heated competition between Kakao and HYBE to become the largest shareholder in SM Entertainment \u2014 home to such K-pop acts as NCT Dream and Red Velvet \u2014 to help rebuild the company after it terminated a production contract with its founder, Lee Soo-man. In February, HYBE acquired a 14.8% stake<\/a> in the K-pop giant from Lee and attempted to acquire an additional 25% stake through a tender offer at 120,000 won ($92.36) per share. HYBE\u2019s bid was too low, however, and the tender offer gave HYBE less than 1% of outstanding shares.<\/p>\n

\n\tBae allegedly acquired SM Entertainment shares to drive up the price above HYBE\u2019s tender offer price, thus thwarting its efforts to obtain a larger stake. On March 6, Kakeo and Kakao Entertainment followed with a tender offer of 150,000 won ($115.46) per share<\/a> \u2014 25% above HYBE\u2019s tender offer price \u2014 and ended up acquiring an additional 25% stake, bringing its ownership of SM Entertainment to 40%. HYBE abandoned its bid<\/a> to control SM Entertainment on March 13 and announced on March 28 that it would sell nearly half of its stake in SM Entertainment<\/a> to Kakao for 248.8 billion won ($191.8 million).<\/p>\n

\n\tKakao is a South Korean tech conglomerate that owns the country\u2019s dominant chap app, KakaoTalk, and a popular taxi-hailing app, Kakao Mobility, among other products. A subsidiary, Kakao Entertainment, owns Starship Entertainment, home to such K-pop groups as Monsta X, as well as South Korea streaming app Melon. In August, Kakao Entertainment and SM Entertainment revealed their plans to create a North American joint venture<\/a> by the end of 2023.<\/p>\n

\n\tThe investigation into stock manipulation started soon after Kakao and Kakao Entertainment beat out HYBE for the SM Entertainment stake. South Korean officials raided<\/a> the offices of Kakao and Kakao Entertainment on April 6 and SM Entertainment\u2019s headquarters on April 18<\/a>. Bae was arrested<\/a> for suspected stock manipulation on Oct. 19 before being indicted on Monday. Other executives were suspected of working with Bae to inflate SM Entertainment\u2019s share price, according to a Reuters<\/em> article<\/a> at the time of his arrest, but to date no one else has been charged.<\/p>\n<\/div>\n<\/div>\n

Aller \u00e0 la source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In a stunning wrinkle in the fevered battle between Kakao Corp. and HYBE for a controlling stake in K-pop company SM Entertainment, Kakao\u2019s chief investment officer was indicted Monday (Nov. 13) for allegedly manipulating the stock price to ward off HYBE\u2019s rival bid. Bae Jae-hyun, Kakao\u2019s chief investment officer, will face a trial for violating […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[17],"tags":[],"class_list":["post-59479","post","type-post","status-publish","format-standard","hentry","category-musique","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"_links":{"self":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/posts\/59479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/comments?post=59479"}],"version-history":[{"count":0,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/posts\/59479\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/media?parent=59479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/categories?post=59479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cyberlego.com\/web\/wp-json\/wp\/v2\/tags?post=59479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}