Alphabiz - Kakao Founder Brian Kim Acquitted in Stock Manipulation Case; Prosecutors Consider Appeal

Brian Kim, founder and Executive Chair of Kakao’s Management Innovation Committee, leaves the Seoul Southern District Court in Yangcheon-gu on October 21 after being acquitted in the first trial over alleged stock manipulation involving SM Entertainment. (Photo = Yonhap News)

[Alpha Biz= Kim Jisun] SEOUL, South Korea – October 21, 2025 – Brian Kim, founder and head of the Future Initiative Center at Kakao Corp., was acquitted on charges of stock manipulation involving SM Entertainment shares, the Seoul Southern District Court ruled on Tuesday. Prosecutors, however, said they are reviewing the verdict and may file an appeal after analyzing the court’s written decision.


The 15th Criminal Division of the Seoul Southern District Court, presided over by Judge Yang Hwan-seung, rejected all evidence presented by the prosecution to support Kim’s alleged involvement in market price manipulation. The court found no conclusive proof that Kim had engaged in or instructed others to manipulate SM Entertainment’s share price.


In a strongly worded statement, the court also criticized aspects of the prosecution’s investigation, citing concerns over “coercive questioning and pressure during interrogations.” The ruling noted that Lee Jun-ho, a former executive at Kakao Entertainment, had changed his testimony multiple times under what the court described as “undue investigative pressure,” adding that such practices “can distort the truth and should no longer be tolerated.”


Following the ruling, the Prosecutors’ Office said it found “portions of the verdict difficult to accept” and would determine whether to appeal after reviewing the full judgment.


Meanwhile, Kakao’s stock surged nearly 6%, closing at ₩62,300, as market sentiment improved amid expectations of Kim’s potential return to a more active management role.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)