South Korean authorities have arrested Kakao Corp founder Brian Kim for alleged market manipulation, marking a significant legal challenge for one of the nation’s top tech entrepreneurs. The Seoul Southern District Court cited potential evidence tampering and flight risks as reasons for the custody decision. This development comes amid a tumultuous period for Kakao, which saw its shares decline by about 25% this year. The allegations against Kim involve a stock-rigging scheme during Kakao’s acquisition of K-pop agency SM Entertainment, where Kakao outbid Hybe, the label behind BTS. Despite denials from Kakao’s representatives, the arrest underscores growing regulatory scrutiny over the conglomerate’s expansive business activities, which span from messaging to finance. This case adds to a history of high-profile South Korean executives facing legal repercussions, including Samsung’s Jay Lee.