According to BlockBeats, on August 8, Kim Beom-soo, the founder of South Korean IT giant Kakao, was arrested and prosecuted by prosecutors for allegedly manipulating stock prices. The Seoul Southern District Prosecutor's Office arrested him on suspicion of violating the Capital Markets Act.

Prosecutors suspect that Kim Beom-soo manipulated the stock price during Kakao's acquisition of SM Entertainment in February last year, raising the stock price of SM Entertainment to above the bidding price of 120,000 won per share by its competitor HYBE, thereby hindering HYBE's bid.

In addition, former Kakao representative Hong Eun-taek and former Kakao Entertainment representative Kim Seong-soo were both prosecuted without being arrested.