▲ Kakao Pangyo Agit
Kim Seong-su, the former CEO of Kakao Entertainment, who was accused of causing financial harm to the company by acquiring an underperforming drama production company at a high price, was found not guilty in the first trial.
The Seoul Southern District Court’s Criminal Agreement Division 15 (Presiding Judge Yang Hwan-seung) acquitted former CEO Kim today (30th) of charges including violation of the Specific Economic Crimes Aggravated Punishment Act (breach of trust).
Lee Jun-ho, the former head of Kakao Entertainment’s investment strategy division, was also indicted and was found guilty only of embezzlement under the Special Act, receiving a sentence of two years in prison with a three-year probation.
The court stated, “Based on the evidence submitted by the prosecutor, it is difficult to prove that the defendants’ actions caused damage to the victim company (Kakao Entertainment),” thus ruling the breach of trust charges under the Special Act as not guilty.
The court explained that factors such as the parties’ status and relationship, their intent to make a deal, negotiation skills, and market conditions comprehensively influence the sale price, making it hard to objectively see the acquisition price for Baram Pictures as excessively high.
Regarding the charges of providing and receiving bribes in breach of trust, the court also found it difficult to conclude that Lee requested Kim to acquire Baram Pictures at a high price or that Kakao Entertainment suffered a loss, based solely on the presented evidence.
They were accused of conspiring in 2020 to have Kakao Entertainment acquire Baram Pictures, a failing drama production company owned by Lee, at a high price, causing a financial loss of 31.9 billion won to the company.
Prosecutors claimed that Lee reaped a benefit worth about 31.9 billion won from the sale, while Kim allegedly received 1.256 billion won from Lee.
(Photo = Yonhap News)