Kakao founder Brian Kim arrested: once the richest man in South Korea, accused of price manipulation

Kim Bum-soo (Brian Kim), founder of South Korean Internet giant Kakao, was arrested by South Korean authorities on suspicion of price manipulation in the acquisition of K-pop agency SM Entertainment. This acquisition battle should have consolidated Kakao's dominance in markets such as music, shopping and ride-hailing, but it has triggered a series of regulatory issues.

Kim Bum-soo's growth process

Kim Bum-soo, 58, lived in poverty in his early years. His father was a pen factory worker and his mother was a hotel waitress. The family of eight could only share one bedroom. He was the first in his family to go to college, studying at Seoul National University and paying tuition by tutoring. After graduation, Kim Bum-soo went to work for Samsung.

Entrepreneurial process

In 1997, Kim Bum-soo left Samsung and used his savings to create Hangame, an online gaming portal. In 2006, he founded Iwilab, the predecessor of Kakao. In 2010, he launched the Korean communication software KakaoTalk and achieved success. Kakao also has products such as Kakao Pay and KakaoBank.

Kakao's success and listing

KakaoBank was listed on the Korea Exchange in 2021, raising 2.55 trillion won and reaching a market value of 18.5 trillion won. Kakao Pay was listed on the Seoul Stock Exchange in the same year, raising a total of 1.53 trillion won. Kim Beom-soo's net worth once reached 14.4 billion US dollars, making him the richest man in South Korea.

Legal disputes and industry background

Kim Beom-soo's arrest stems from allegations of price manipulation in the acquisition battle of K-pop agency SM Entertainment. South Korean courts have a tradition of sending industry leaders to prison. For example, senior executives of Samsung, Hyundai and Lotte have been sentenced to prison, and many have been pardoned and returned to work after a few years.

Kim Beom-soo's arrest marks South Korea's strict regulatory attitude towards corporate leaders. Although his entrepreneurial story is full of inspiration, this incident casts a shadow on his brilliant career.