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Founder Of Tech Giant Kakao Arrested For Stock Manipulation

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Kim Beom-su, founder of South Korean internet company Kakao, arrives at a court in Seoul on July 22, 2024. (Photo by YONHAP / AFP)

 

The billionaire founder of South Korean internet conglomerate Kakao was arrested early Tuesday, a Seoul court said, accused of manipulating stock prices during the acquisition of K-pop powerhouse SM Entertainment.

Founded in 2010, Kakao has grown to be a sprawling empire and owns everything from a major online bank to South Korea’s largest taxi-hailing app, plus KakaoTalk — the country’s biggest messaging app which is installed on 90 per cent of phones.

 

It also has a vast entertainment portfolio, encompassing music labels and talent management, which it augmented significantly last year by securing a controlling 39.87 per cent stake in SM Entertainment, becoming its largest shareholder.

 

Prosecutors accuse Kakao of buying 240 billion won ($173 million) worth of SM shares on 553 occasions in February 2023 at inflated prices in a deliberate effort to thwart a takeover bid by HYBE, the agency behind K-pop megastars BTS.

 

HYBE had purchased a 14.8-percent stake from SM’s founder, Lee Soo-man, and proposed buying more shares at 120,000 won each, but withdrew its attempt after SM’s stock prices soared.

 

The Seoul Southern District Court approved an arrest warrant for Kakao founder Kim Beom-su, citing risks of him fleeing and destroying evidence, it said in a statement.

 

Authorities have also questioned other Kakao executives, prosecutors said.

At an emergency Kakao group meeting last week, Kim said that it was a “pity” that the situation had occurred while “group members are working together to renovate management and innovate AI-based technology”.

He later said the charges against him were “not true”.

“I believe the facts will be revealed in the end as I have never ordered or tolerated any illegal activities,” Kim said, according to a press release sent to AFP by the company on Tuesday.

 

Experts said that the detention of the firm’s head could cause problems for the company.

 

“Kakao’s AI-based innovation will likely meet difficulty due to the absence of the head of the company, and the group will have to focus its efforts on eliminating total risk and judicial risk,” said Choi Kyoung-jin, a law professor at South Korea’s Gachon University.

 

“The risk of the group due to the leader being absent from Kakao will probably continue for a considerable period of time,” he added.

“Kakao will need to reorganise its governance.”

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFP

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Nigerian Jailed For Masturbating In Front Of Woman On UK Train

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A Nigerian man and registered sex offender, Babatunde Odutola, has been sentenced to prison in the UK after exposing himself and masturbating in front of a woman on a train heading to Manchester.

Odutola, 36, who has no fixed address, was sentenced to 44 weeks in prison at Manchester Magistrates’ Court on Monday, September 14, after pleading guilty to outraging public decency and violating a suspended sentence order.

The incident took place around 7 p.m. on Friday, September 11, on a train traveling through Cheshire towards Manchester Piccadilly railway station.

According to the British Transport Police, Odutola approached a woman on the train, looked her up and down, and became aggressive when she refused to engage with him.

He then exposed himself while sitting in a wheelchair and began masturbating while staring at the woman and telling her to “come over.”

A fellow passenger intervened and helped escort the distressed woman from the carriage. Police reports indicate that CCTV footage showed Odutola continuing to masturbate as other passengers walked through the carriage.

British Transport Police officers arrested him after the train arrived at Manchester Piccadilly. He was prosecuted and jailed within 72 hours of the incident.

Detective Constable Leonidas Christoforou of the British Transport Police stated that Odutola’s behavior was “terrifying” for the victim, whom he allegedly targeted while she was traveling alone.

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2027 Hajj: Saudi Arabia Rejects Nigeria’s Request For Additional Slots

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The National Hajj Commission of Nigeria (NAHCON) has announced that the Kingdom of Saudi Arabia has declined Nigeria’s request for an upward review of its 2027 Hajj allocation, leaving the country’s quota unchanged despite growing demand from intending pilgrims nationwide.

 

The Commission disclosed that it had formally engaged the Saudi Ministry of Hajj and Umrah, seeking additional pilgrimage slots to accommodate the increasing number of Nigerian Muslims desirous of undertaking the sacred journey and to address appeals from several state pilgrims’ welfare boards for enhanced allocations.

However, Saudi authorities communicated their inability to grant additional slots, citing capacity limitations, structural constraints within the holy sites, and the Kingdom’s policy of strict adherence to approved country quotas under the current operational framework.

Consequently, Nigeria’s allocation for the 2027 Hajj exercise remains fixed at 35,000 slots for government pilgrims and 15,000 slots for licensed tour operators, bringing the country’s total approved allocation to 50,000 pilgrims.

Commenting on the development, the Chairman and Chief Executive Officer of NAHCON, Ambassador Ismail Abba Yusuf, said the Commission fully understands the disappointment the decision may cause many aspiring pilgrims and state pilgrim boards that had hoped for additional allocations.

According to him, the Commission explored all available diplomatic and operational channels in pursuit of an increased quota but respects the final decision of the Saudi authorities.

“We appreciate the deep spiritual desire of many Nigerian Muslims to perform Hajj and understand the expectations of states and stakeholders seeking additional slots. While every effort was made to secure an upward review, the Saudi authorities have communicated their final position based on operational realities and capacity considerations,” Ambassador Yusuf stated.

The NAHCON Chairman urged state pilgrims’ welfare boards, agencies and licensed tour operators to make judicious and transparent use of their approved allocations while ensuring strict compliance with all timelines established by the Commission and the Saudi Nusuk platform.

He emphasized that the deadline for uploading the data of all prospective pilgrims for the 2027 Hajj exercise remains September 26, 2026, warning that no extensions would be granted under any circumstance.

“Kindly note that the deadline for uploading prospective pilgrims’ data remains September 26, 2026. We urge all partners, state pilgrim boards, tour operators and representatives to ensure that all required information is submitted before this date, as no extensions will be granted,” he said.

Ambassador Yusuf further advised intending pilgrims who may be unable to secure a slot under the approved 2027 allocation not to lose hope, revealing that preparations for the subsequent pilgrimage season have already commenced.

“Individuals who were unable to secure a slot for the upcoming Hajj are encouraged to register for the 2028 Hajj. The Commission has officially opened the registration portal for this period, and applications are now being accepted,” he added.

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Driver Raped By Two Women After Kidnapping Him For Ransom

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South African police have arrested five suspects after rescuing a 25-year-old e-hailing driver who was allegedly kidnapped, raped and held for ransom in Cape Town.

 

The South African Police Service (SAPS) said in a statement on Sunday that Steenberg police rescued the driver after he was allegedly raped by two female suspects and held at ransom by the group.

Police were alerted by the victim’s brother after the suspects contacted him and demanded R4,000 in cash for the driver’s release.

According to SAPS, the police used the victim’s vehicle tracker to locate him at Southampton Road in Heathfield, where he was rescued.

“Steenberg police rescued a 25-year-old e-hailing driver after he was raped and held at ransom by two female suspects and three males yesterday,” the police said.

The victim had reportedly met one of the female suspects the previous week through his e-hailing business.

According to police, the two exchanged telephone numbers and communicated throughout the week before arranging to meet.

“When he went to meet her, he was kidnapped by the suspects and the females raped him,” SAPS said.

Police subsequently arrested the two female suspects, aged 23 and 34, as well as three male suspects aged 16, 42 and 48.

The five suspects are expected to appear before the Wynberg Magistrate’s Court on Monday, September 14, 2026.

SAPS said they would face charges relating to the alleged kidnapping and rape.

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