Kakao's stock price is weak in early trading on the 1st. The decline in investor sentiment is interpreted as a result of the prosecution seeking a heavy sentence for Kakao founder Kim Beom-su.
As of 9:41 a.m. on that day, Kakao is trading at 61,350 won, down 1,150 won (1.84%) from the previous trading day. Other group stocks including Kakao Pay (-2.17%), Kakao Games (-1.42%), and KakaoBank (-1.22%) are also down at the same time.
On August 29, the prosecution requested the court to impose a 15-year prison sentence and a fine of 500 million won on Chairperson Kim.
Chairperson Kim was indicted for manipulating the market by setting SM Entertainment (SM) stock prices higher than the 120,000 won tender offer made by rival HYBE to obstruct the tender offer while pushing for the acquisition of SM back in February 2023. As SM's stock price continued to rise, HYBE abandoned the acquisition.
Chairperson Kim was released on bail in October, two months after being arrested and indicted in August of last year. Since then, he has been undergoing trial in a non-custodial status.