The South Korean Public Prosecutor’s Office has called for a 15-year prison sentence for Brian Kim, founder of Kakao Corp., accused of manipulating actions during the dispute over SM Entertainment, one of the largest K-pop companies in the country.
At the final hearing held on Friday (29), prosecutors also requested that the Southern District Court of Seoul applies a fine of 500 million Won (about $ 360,000) to Kim, considered Korea’s main digital entrepreneur. The verdict will be announced on October 21.
Kim, who is being treated against early -stage bladder cancer, presented a more debilitated aspect compared to his last court appearance a few months ago. In his final statement, he claimed to be innocent and classified as “difficult to accept” the claim that he manipulated the market or ordered the acquisition of SM “at any cost.”
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“I attended numerous meetings throughout my career, but I never took any illegal or considered it part of our strategy,” he said. “I never tried to drive business by illegal or inadequate means while I was ahead of the Kakao group.”
Kakao’s shares fell 4.6% at After Market in Seoul. Brian Kim, 59, has an estimated equity of $ 5.4 billion, according to Bloomberg Billionaires Index.
According to prosecutors, Kim articulated a stock manipulation scheme in early 2023, when Kakao disputed with rival Hybe Co. SM control. He and his allies would have done operations worth about 240 billion Won to inflate the price of SM papers, make it difficult to offer Hybe and ensure Kakao’s position on the label.
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The trial marks a sudden fall for one of the most celebrated names in the South Korean technology sector, which has already been praised for challenging the dominance of family conglomerates. Currently, Kakao’s services are part of the daily life of most of the 52 million South Koreans, with presence in areas such as messages, banking services, games, e-commerce and application transportation.
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