[Alpha Biz= Reporter Kim Jisun] On the 23rd, Kakao Group stocks fell sharply after the arrest of Kim Bum-soo, the group's founder and head of the management reform committee, on charges of stock price manipulation.
Kakao's stock closed at 38,850 KRW, down 2,200 KRW (-5.36%) from the previous day. After a brief rebound following the opening, the stock quickly fell back and ended the day with a loss of over 5%.
Shares of Kakao's subsidiaries also saw significant declines: Kakao Pay (-7.81%), Kakao Games (-5.38%), Kakao Bank (-3.79%), and SM C&C (-3.25%) all dropped sharply.
According to Yonhap Infomax, the market capitalization of Kakao Group's 10 companies decreased to 34.671 trillion KRW, down 1.712 trillion KRW (4.70%) from the previous day's 36.383 trillion KRW.
If Kim is found guilty in this case, Kakao could also face legal consequences under joint penalty regulations. A sentence involving fines or greater penalties could result in Kakao losing its major shareholder status in Kakao Bank due to the Internet Bank Special Law. In such a scenario, Kakao would need to divest most of its 27.17% stake in Kakao Bank, retaining only 10%.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
