Kakao founder seeks bail after arrest over suspected stock manipulation

Kim Beom-su, founder of tech giant Kakao Corp., has filed for bail two months after being arrested over suspected stock manipulation related to the firm's takeover of a K-pop agency last year, sources said Friday.

Kim, now chairman of Kakao's Management Innovation Committee, filed for bail with the Seoul Southern District Court the previous day, legal sources said.

Since his arrest on Aug. 8, Kim has been facing trial in detention, charged with involvement in the suspected stock manipulation of SM Entertainment during the firm's takeover of the K-pop agency in February last year.

Kim faces charges of inflating SM share prices above rival Hybe's tender offer price of 120,000 won ($88.9) in February last year, in collaboration with a private equity fund, to block Hybe's takeover of SM.

In March last year, Kakao and Kakao Entertainment became the controlling shareholder in SM after acquiring a 39.87 percent stake in the agency.

In the first court hearing held last month, Kim refuted his charges, saying that his actions were part of the necessary managerial procedures for the acquisition competition.

The court has yet to schedule a hearing to deliberate on the bail request. (Yonhap)