South Korean courts have ruled “not guilty” for Kakao’s founder, clearing him of charges that he tried to manipulate the company’s share price.
The case began after regulators accused the founder—who helped launch South Korea’s hit messaging app KakaoTalk—with exchanging hundreds of thousands of dollars of stock in a way that could mislead investors. The allegations said he bought and sold shares at strategic moments to push the price up, then sold off at a profit.
Judge Yi Jeong‑min, hearing the case in Seoul, found that the evidence was weak and that the founder acted within the rules. The court said no direct proof showed he had intent to distort the market, so the charges were dismissed. “The evidence does not support the claim of manipulation,” Judge Yi said. The decision also gave the founder’s lawyers a chance to file a criminal complaint against the prosecutors, a move that could further push the matter to the Supreme Court.
For Kakao, the ruling is a breath of fresh air. The company’s stock is trading at roughly KRW 1.1 billion per share, a drop from the peak last year. Kakao’s CEO said the court’s decision “restored confidence” among investors and partners. The result may also help the company finish a planned split of its entertainment arm, which was slowed by the legal battle.
The decision comes as Korea tightens its scrutiny on the tech sector. Regulators are increasingly wary of “friendly trades” that might give unfair advantage to insiders. This case is likely to be cited in future investigations into market manipulation.
Investors will keep a close eye on how the ruling affects Kakao’s stock and whether the founder faces any civil suits from shareholders who were hurt by the alleged price swings.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
