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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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Enzo Maresca Gets 3Yr Deal To Replace Pep At Man City

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Enzo Maresca is believed to have signed a three-year deal to replace outgoing Man City manager Pep Guardiola, after it was revealed that the legendary head coach will be leaving the Etihad at the end of the season.

 

Speculation around Guardiola’s departure date has been rife as the season draws to a close, despite the Catalan having one year left on his contract.

According to report, Man City’s sponsors were among those to have been told that Guardiola will be calling time on a remarkable trophy-ladened spell on Sunday.

The report also shared that Maresca, Guardiola’s former assistant, was a front-runner for the vacant spot at the dugout, with Fabrizio Romano confirming on Tuesday morning that the ex-Chelsea manager will be taking over.

The Italian head coach has been out of work since his mutual departure from Stamford Bridge under strained circumstances on January 1.

But even before his acrimonious mid-season exit, Maresca has been viewed as a long-term successor to Guardiola following their stint working together at Man City.

The 46-year-old served as Guardiola’s assistant between 2022 and 2023 after previously coaching Man City’s youth sides, before departing to earn Championship promotion with Leicester.

Maresca then went on to win the Uefa Conference League and the Club World Cup with Chelsea during his 18-month spell in west London.

Guardiola is set to celebrate his time in English football with an open-top bus parade in Manchester after winning the Carabao Cup and FA Cup this season, but until Monday night, the manager had been notably vague over his future plans.

But before news broke of his shock exit, Guardiola had been keen to tamp down any suggestions that he would be commemorated with any fanfare.

‘The club don’t have to do anything, honestly,’ Guardiola, who has yet to officially confirm his departure, said. ‘The important thing in our lives is that when you look back, you can look with a big smile and say “that was good”.

‘Bernardo (Silva) and John (Stones) can feel that. We spoke about it over the last few days. When you’re old, a grandfather, you can look at the memories. That is the most important thing in life.’

Tired of addressing his contractual situation, Guardiola added with a dose of sarcasm: ‘Whatever happens at the end of the season – and when I extend my contract for three more years – I can look back and say, “how nice has that been?”

‘That is the most important thing by far. Most of the people who lived this time here together can feel it.’

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Arteta: I Will Be The Biggest Ever Bournemouth Fan Against Man City Tonight

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Mikel Arteta says he will be the “biggest ever” Bournemouth fan when the Cherries take on Manchester City on Tuesday.

 

Arsenal moved a step closer to winning their first Premier League title since 2003-04 after a narrow 1-0 win over Burnley on Monday.

Kai Havertz’s first-half header was enough for Arteta’s side to secure all three points at Emirates Stadium, moving them five clear of City ahead of the final day.

City have a game in hand, which is their trip to the Vitality Stadium, where Pep Guardiola’s side must win if they are to stay alive in the title race.

Arteta revealed he will be watching City’s fixture against Bournemouth, though he will not be in contact with Cherries boss Andoni Iraola.

When asked if he will be a Bournemouth fan on Tuesday, Arteta said: “The biggest ever.

“For Andoni [Iraola] and all the players, and all the people who are supporters of Bournemouth, I think we all are. We know that means, they get our support.

“I don’t think he [Iraola] needs it [a message]. What he’s done in that football club, the transformation, and what they are playing for, I don’t think they need anything else.

“When you look at how Burnley played today, the spirit that they showed, how difficult they made it, so imagine [on Tuesday].”

Since losing 2-1 to City, Arsenal are the only side to win all of their matches (4/4) and also the only side not to concede a goal in the Premier League.

Arsenal have kept 32 clean sheets this season, six more than any other side in Europe’s top five leagues in all competitions.

On Arsenal’s defence, Arteta added: “I think the desire that every single player shows in their defensive duties, their behaviours, the way they work for each other is phenomenal.

“It’s a lot of work, put in by all the coaches as well, and we all know the importance of that and how many results and wins we have because of that.”

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Neymar Included In Brazil’s 2026 World Cup Squad (FULL LIST)

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Brazil superstar Neymar was handed a dramatic recall to the country’s World Cup squad on Monday, returning to the national team after a near three-year absence.

 

The inclusion of Neymar, Brazil’s all-time leading goalscorer with 79 goals in 128 appearances, was the biggest surprise in the 26-man squad named by coach Carlo Ancelotti.

Ancelotti announced Neymar’s selection at a gala ceremony in Rio de Janeiro, with loud cheers ringing out as the veteran attacker’s call-up was confirmed.

Speculation has raged for months over whether the 34-year-old former Barcelona and Paris Saint-Germain attacker would force his way back into the national team set-up.

The forward, a veteran of the 2014, 2018, and 2022 World Cups, had not played for Brazil since suffering a knee injury during a World Cup qualifying game against Uruguay in 2023.

A mixture of injuries and poor form had left him outside the national team setup, with Ancelotti citing concerns over his fitness after leaving him out of Brazil’s squad for March friendlies against France and Croatia.

However, Neymar, who rejoined boyhood club Santos in January after an injury-ravaged stint in Saudi Arabia, has now earned Ancelotti’s stamp of approval for the World Cup in the United States, Canada and Mexico.

Brazil, who are chasing a record sixth World Cup crown, open their World Cup campaign against Morocco on June 13 before playing Haiti and Scotland in Group C.

Brazil World Cup Squad

Goalkeepers: Alisson (Liverpool/ENG), Ederson (Fenerbahce/TUR), Weverton (Gremio/BRA)

Defenders

Alex Sandro (Flamengo/BRA), Danilo (Flamengo/BRA), Leo Pereira (Flamengo/BRA), Bremer (Juventus/ITA), Douglas Santos (Zenit St Petersburg/RUS), Gabriel Magalhães (Arsenal/ENG), Ibanez (Al-Ahli/KSA), Marquinhos (Paris Saint-Germain/FRA), Wesley (Roma/ITA)

Midfielders

Bruno Guimaraes (Newcastle/ENG), Casemiro (Manchester United/ENG), Danilo (Botafogo), Fabinho (Al-Ittihad/KSA), and Lucas Paqueta (Flamengo/BRA).

Forwards

Endrick (Lyon/FRA), Gabriel Martinelli (Arsenal/ENG), Igor Thiago (Brentford/ENG), Luiz Henrique (Zenit/RUS), Matheus Cunha (Manchester United/ENG), Neymar (Santos/BRA), Raphinha (Barcelona/ESP), Rayan (Bournemouth/ENG), Vinicius Junior (Real Madrid/ESP)

 

AFP

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