CEO of One Asia Partners arrested on suspicion of SM market manipulation

Mr. A, CEO of One Asia Partners, a private equity fund management company, who is suspected of colluding with Kakao in 'manipulating SM Entertainment's market price' was arrested.

On the 27th, Chief Judge Han Jeong-seok of Criminal Division 2 of the Seoul Southern District Court issued an arrest warrant for Mr. A, who is suspected of violating the Capital Market and Financial Investment Business Act, saying, "There is a risk of destroying evidence and a risk of running away." did.

According to the prosecution, Mr. A is suspected of manipulating the market price by conspiring with Kakao and mobilizing fund funds to purchase SM stocks at high prices in order to hinder Hive's tender offer in February of last year.

In addition, Bae Jae-hyun, former investment manager of Kakao, who is accused of violating the Capital Markets Act by manipulating SM market prices, was arrested in November of last year and is currently in the first trial. Former general manager Bae is accused of manipulating market prices to hinder rival Hive's public purchase of SM shares during the takeover of SM management rights in February last year.

In addition, One Asia Partners is also suspected of violating its ‘disclosure obligation’ by failing to report to the financial authorities even though it owns more than 5% of SM shares.

Reporter Junho Yoon, Ten Asia delo410@tenasia.co.kr