Tech Star Arrested in Korea After $10 Billion Fall From Grace
- Kakao’s Kim detained in a surprise decision after midnight
- The move raises questions about the internet firm’s prospects
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Three years ago, Brian Kim sat at the pinnacle of South Korea’s internet industry — a celebrated entrepreneur who created the dominant messaging platform for the country’s 50 million people. Today, he’s in detention, preparing to fight in court for his freedom and his empire.
The Kakao Corp. founder was arrested just after 1 a.m. Tuesday for an alleged price-rigging scheme during a high-profile takeover battle for K-pop agency SM Entertainment Co. That acquisition was supposed to cement Kakao’s dominance in markets from music and shopping to ride-hailing. Instead, it triggered a series of regulatory blows — and raised questions about the future of up-and-coming innovators as they challenge the country’s staid conglomerates.