Seoul: Tech giant Kakao Corp. expressed relief and satisfaction following a Seoul court's decision to acquit its founder, Kim Beom-su, of stock manipulation charges associated with the company's acquisition of K-pop agency SM Entertainment Co. The company pledged renewed efforts to reclaim its position in the burgeoning artificial intelligence (AI) sector.
According to Yonhap News Agency, Kakao released a statement appreciating the court's decision, which they believe dispels the long-standing perception of the company as unethical. The company emphasized that the court's verdict confirms the baselessness of accusations regarding stock price manipulation.
Kakao acknowledged that the investigation and trial, which spanned over two years and eight months, posed significant challenges. They expressed regret over their inability to respond swiftly to market changes during this period. The company is now focused on making up for lost time and fulfilling its social responsibilities.
Kim Beom-su, now leading Kakao's Future Initiative Center, also extended gratitude to the court for aiding in the restoration of the company's reputation. Earlier, the Seoul Southern District Court acquitted Kim of breaching the Capital Market Act by allegedly inflating SM Entertainment's share prices to thwart a takeover attempt by Hybe Co.
In February 2023, Kakao and Hybe, the parent company of BTS' management agency BigHit Music, competed to acquire SM Entertainment, home to prominent artists like EXO, Super Junior, and aespa. Hybe withdrew its bid after a surge in SM's share prices, paving the way for Kakao to become the new owner.
During Kim's investigation, Kakao made strides to enhance its governance and operations, streamline its business portfolio, and regain public trust. The company reduced its number of affiliates by approximately 30 percent, bringing the total to 99 over the past 18 months.
Kakao also intensified its focus on AI, collaborating with OpenAI to integrate the chatbot ChatGPT into its messaging app, KakaoTalk.