Kim had been arrested on July 23 for violating the Financial Investment Services and Capital Markets Act.
The Seoul Southern District Prosecutors' Office also sent former Kakao Corp. CEO Hong Eun-taek and former Kakao Entertainment CEO Kim Sung-soo to trial on the same charges, both without physical detention.
Prosecutors allege that Kakao Corp. and Kakao Entertainment manipulated SM Entertainment's stock price in February 2023 to obstruct a public tender offer by HYBE, the entertainment giant behind BTS.
HYBE had acquired a 14.8 percent stake in SM Entertainment from its founder, Lee Soo-man.
To obstruct HYBE's bid, Kakao allegedly spent 240 billion won ($174.2 million) over four days, conducting a total of 553 transactions to artificially drive up SM's stock price above HYBE's offer of 120,000 won per share. Despite HYBE's initial plan to buy additional shares from minority shareholders at this price, it withdrew its bid after SM's stock price surged.
Prosecutors suspect Kim was briefed on and approved the large-scale stock purchases.
reporter
Kim Joo-heon
jhkim123@ajunews.com
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