A PYMNTS Company

Korea Court Acquits Kakao Founder in Stock Manipulation Case

By  |  October 26, 2025

A South Korean court has acquitted Kakao Corp. founder Brian Kim of stock manipulation charges, ending a high-profile legal battle that had cast a shadow over one of the country’s most prominent tech entrepreneurs. The Seoul Southern District Court ruled on Tuesday that prosecutors failed to present sufficient evidence to support claims that Kim had manipulated the share price of K-pop giant SM Entertainment Co., according to Bloomberg.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Prosecutors had sought a 15-year prison sentence and a 500 million won ($350,000) fine, alleging that Kim had orchestrated trades in early 2023 designed to influence SM’s stock during a fierce acquisition contest with rival Hybe Co. However, the court’s three-judge panel concluded that Kakao’s share purchases did not constitute market manipulation. The verdict was delivered after a brief hearing lasting just over half an hour, per Bloomberg.

    Following the decision, Kakao’s shares surged as much as 7% in Seoul trading — their strongest intraday gain in more than a month. The rally reflected investor optimism that the ruling could mark a turning point for the company, which has faced regulatory scrutiny and internal upheaval in recent years.

    Related: South Korea Fines Kakao Mobility $10.5 Million for Antitrust Violations

    Outside the courthouse, Kim expressed gratitude toward the judiciary. “I would like to express my gratitude to the court for carefully reviewing the case over a long period of time and reaching this conclusion,” he told reporters. “I hope this decision will serve as an opportunity for Kakao to move, even slightly, out of the shadow of allegations of stock manipulation and price rigging that have lingered over the company.”

    Kim, whose estimated net worth stands at roughly $4.9 billion based on the Bloomberg Billionaires Index, appeared visibly relieved after the acquittal, smiling and chatting with his legal team. His exoneration removes a major obstacle to restoring his influence over Kakao and rebuilding confidence among investors, according to Bloomberg.

    With the case now closed, Kakao — led by Chief Executive Officer Shina Chung — is expected to focus on stabilizing its vast ecosystem of businesses, spanning messaging, fintech, entertainment, and mobility services.

    Source: Bloomberg