Kakao founder Kim Beom-su granted bail request over SM Entertainment scandal

Kakao founder Kim Beom-su has been granted bail at 300 million won amid an ongoing investigation into price rigging for SM Entertainment.

Kakao Founder Kim Beom-su walks out of the Seoul Southern District Court after attending a hearing on July 22. [NEWS1]

The Seoul Southern District Court granted a request for bail by Kakao founder Kim Beom-su, who had been detained since August on allegations of price rigging during a bidding war for K-pop agency SM Entertainment.

The court set his bail at 300 million won ($217,463) and barred him from contacting other individuals involved in the case.

Kim was arrested on July 23 on suspicion of colluding with private equity fund OneAsia Partners to artificially inflate SM Entertainment's shares in an attempt to block K-pop giant HYBE, a competing bidder, from acquiring them, on Feb. 16, Feb. 17 and Feb. 28 of last year.

He was indicted on Aug. 8 and legal proceedings are still ongoing.

Prosecutors allege that a group of Kakao executives systematically gathered funds in order to enact the alleged four-day buying spree and that Kim, as the firm's chief decision-maker, was aware of the plan.

Kim has denied the allegations.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]