South Korean tech giant Kakao’s founder arrested in stock price manipulation case

Associated Press

SEOUL, South Korea (AP) — South Korean prosecutors have arrested the founder of the country’s tech giant Kakao Corp. on suspicion of stock price rigging during his company’s takeover of a major K-pop agency last year. Kim’s arrest came after the Seoul Southern District Court approved an arrest warrant, citing concerns that he could flee or destroy evidence. A Seoul prosecutors’ office said Tuesday it has up to 20 days to investigate him and determine whether to indict him. Prosecutors say Kim has denied the allegation. Kakao’s stock price fell more than 5% on Tuesday. Kakao is best known for its hugely popular mobile chat app, called Kakao Talk, but it has branched out into banking, online shopping and other services.