Confidence in Facts
The investigation into allegations of stock price manipulation during Kakao’s acquisition of shares in SM Entertainment is gaining momentum.
Financial Supervisory Service (FSS) Chairman Lee Bok-hyun met with reporters at a Shinhan Card event held at Shinhan Card's headquarters in the Jung district of Seoul on July 17. When asked about the SM investigation, he said, “I have confidence in clarifying the facts to some extent,” adding, “I will have the opportunity to speak about it soon.”
The FSS has previously forced investigations, including seizures and searches, into Kakao and SM Entertainment over allegations of stock price manipulation raised by HYBE in April.
HYBE filed a complaint with the FSS claiming that an abnormal purchase activity, equivalent to 2.9% of SM's total issued stocks, occurred at the IBK Investment Securities Pangyo Branch on February 16, the public purchase period for SM stocks.
The FSS is examining whether Kakao has violated the Capital Market Act by artificially intervening in the stock price during HYBE's open purchase process of SM Entertainment shares.