Korean messenger and app giant Kakao is facing growing doubts about its efforts to revamp its governance and business structure, as prosecutors have set their sights on Kim Beom-su, the company’s founder who has been deeply involved in the operations and investments of numerous Kakao affiliates.
At a meeting with Kakao affiliate leaders, Thursday, Kim emphasized the need to “overhaul Kakao’s governance to meet public expectations” and stated that the charges against him are “not true.”
His remarks came a day after the Seoul Southern District Prosecutor’s Office filed for an arrest warrant against Kim alleging that he violated financial laws in the process of Kakao’s takeover of a stake in K-pop agency SM Entertainment last year.
Prosecutors suspect Kim’s involvement in an alleged scheme where leaders of Kakao affiliates are accused of manipulating SM’s stock prices to a certain 한국을 level to interfere with bidding competitions involving Hybe, the parent company of BigHit, the management agency for BTS.
“Since I did not order or condoned any illegalities, the truth will come to light,” Kim said during the meeting.
Kakao said the meeting was organized because the CEOs of affiliates “agreed on the necessity of exploring measures to address the current situation, in which Kim’s legal risk may affect the whole group.”