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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

International News

W/C Round Of 32 Matchup: Brazil vs Japan, Netherlands vs Morocco

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The FIFA World Cup group stage has concluded, with the Netherlands securing first place in Group F and Japan finishing second. According to the knockout stage bracket, the top two teams from Group F will face the top two teams from Group E.

 

Two more Round of 32 matchups have been confirmed: Brazil vs. Japan and Netherlands vs. Morocco. The first Round of 16 matchup was announced yesterday, featuring South Africa vs. Canada.

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‘Please Stop The Nonsense’ – Germany Coach Tells Journalist After Ecuador Defeat

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Julian Nagelsmann defended question marks surrounding Germany’s commitment during their defeat by Ecuador, telling journalists: “Please stop the nonsense!”

Germany, already guaranteed top spot in Group E, were beaten 2-1 in their final group outing, as their opponents came from behind to snatch all three points at New York New Jersey Stadium.

Nagelsmann’s side saw their 11-match winning streak brought to an end, while they have now failed to register a clean sheet in any of their last nine games at the finals, equalling their longest streak along with their opening nine matches across 1934 and 1954.

And since the start of the 1998 World Cup, this was just the second time Germany had lost a game at the tournament in which they opened the scoring (W25 D2) following a 1-2 loss to Japan in 2022.

While not impressed by his players’ performance, he was quick to reject claims it was due to a lack of commitment, with their place in the knockout phase already secured.

“Please stop the nonsense, honestly!” Nagelsmann told reporters. “Didn’t the boys want to go full throttle?

“Of course, we made different changes than we might have done in moments when we urgently needed another goal.

“But we can’t tell any player that he didn’t step on the gas, that’s far too striking for me.

“We have to learn that after a good start and an early lead, we can play with more composure, instead of suddenly switching positions too much. We just need to be more patient and stay a bit more structured in our positions.

“We deliberately made a lot of changes. You could see that we also had a few tired legs. You can’t blame anyone for the fact that everything is a little slower and takes longer. We trust every player in the squad, and have to give the players the chance to show that.”

Coincidentally, it was in New York that Germany crashed out of the 1994 World Cup after surrendering a lead, losing 2-1 in the quarter-finals against Bulgaria at the Giants Stadium.

Joshua Kimmich, who won his 113th cap to move to joint-eighth with Philipp Lahm on his nation’s all-time list, conceded the four-time world champions were worthy losers against Ecuador.

“We started well, but then we gave the ball away too cheaply and kept inviting them on,” he added.

“We made it easy for them and let them grow into the game. In the second half, the defeat was deserved.”

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Burnley And West Ham To Meet On First Championship Weekend

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Relegated Burnley and West Ham will meet on the opening weekend of the Championship season on Sunday, 16 August.

 

The Clarets finished 19th in the top flight last season and will host the Hammers, who went down on the final day.

Fellow relegated side Wolves will play the league’s curtain-raiser against Blackburn at Molineux on Friday, 14 August.

Elsewhere, Southampton, who will start the season on minus four points after the Spygate scandal, travel to Watford on the opening weekend and promoted Cardiff welcome Welsh rivals Wrexham on Monday, 17 August.

League One champions Lincoln start the season at beaten play-off finalists Middlesbrough on Saturday, 15 August and third tier play-off final winners Bolton begin the campaign with a home game against Preston on the same day.

The Championship season starts a week after clubs play their first competitive fixture in the first round of the Carabao Cup and one week before the Premier League gets under way.

Burnley, West Ham and Wolves will all be looking to secure Premier League promotions at the first time of asking.

The Clarets have now been relegated from or promoted to the top flight in each of the past four seasons.

However, now less than two months out from the start of the season they remain without a manager following the departure of Scott Parker in May.

West Ham boss Nuno Espirito Santo has remained despite them dropping out of the top flight after 14 seasons.

The Portuguese led Wolves to the Championship title in his one previous season managing at this level in 2017-18.

Wolves finished bottom of the Premier League in 2025-26 and sacked boss Rob Edwards earlier this month to bring in Cesar Peixoto.

They have bolstered their squad with former England defender Kieran Trippier and returning Mexico striker Raul Jimenez.

However, all three will be aware that in both of the past two seasons a team relegated from the top tier has suffered a second successive demotion to League One.

Former Premier League champions Leicester City went the same way as Luton Town had in 2024-25.

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