South Korean authorities arrested a senior Kakao Corp. executive for alleged stock price manipulation connected to a high-profile bidding war over K-pop agency SM Entertainment Co. earlier this year.
Kakao Chief Investment Officer Bae Jae-hyun was arrested early Thursday, according to the Seoul Southern District Court which issued the warrant.
Internet giant Kakao won a controlling stake in SM after an intense bidding battle with Hybe Co., the label behind boyband sensation BTS. Financial regulators accused the executive, along with two others working at Kakao and Kakao Entertainment Corp., of buying 240 billion won ($178 million) in shares of SM in an attempt to disrupt Hybe’s offer. The court has not issued warrants for others, and it was unclear whether there could be more arrests.
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