By Heekyong Yang and Heejin Kim

SEOUL (Reuters) -A South Korean court on Tuesday cleared Kakao Corp’s billionaire founder Kim Beom-su of stock manipulation charges, sending shares of the country’s dominant chat app operator 5% higher.

The tech tycoon was arrested in July last year on charges of being involved in manipulation of the stock price of SM Entertainment in 2023 to hinder a competitor, Hybe, from acquiring it. He was released on bail in October 2024.

In August, prosecutors had sought a 15-year jail term and a fine of 500 million won ($350,000).

Kim thanked the court for the ruling and said, “I hope this serves as an opportunity for Kakao to move, even slightly, out of the shadow of (the allegations) of stock price and market manipulation.”

Kim shot to fame in South Korea’s di

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