Kakao founder Kim Beom-su faces 15-year prison demand in SM Entertainment case

South Korean prosecutors have requested a 15-year prison sentence for Kakao founder Kim Beom-su in an appeals court, maintaining their stance on allegations of stock price manipulation involving SM Entertainment.

During the final hearing at the Seoul High Court, prosecutors also sought a 12-year sentence for former Kakao investment chief Bae Jae-hyun, along with fines of 510 million won for both individuals. Additionally, fines of 500 million won each were requested for the corporate entities Kakao and Kakao Entertainment.

The case stems from the 2023 takeover battle for SM Entertainment. Prosecutors allege that Kakao engaged in market manipulation to keep SM's stock price above 120,000 won, thereby obstructing a tender offer by competitor HYBE.

While the first instance court acquitted Kim and other defendants, ruling that large-scale stock purchases did not inherently constitute illegal manipulation, prosecutors argue the original verdict contained errors in fact-finding and legal interpretation. The defense maintains that business decisions to compete for management rights are distinct from illegal market manipulation. A verdict is expected in October.