The billionaire founder of South Korean internet conglomerate Kakao was arrested early Tuesday, a Seoul court said, accused of manipulating stock prices during the acquisition of K-pop powerhouse SM Entertainment.

Founded in 2010, Kakao has grown to be a sprawling empire and owns everything from a major online bank to South Korea's largest taxi-hailing app, plus KakaoTalk -- the country's biggest messaging app which is installed on 90 percent of phones.

It also has a vast entertainment portfolio, encompassing music labels and talent management, which it augmented significantly last year by securing a controlling 39.87 percent stake in SM Entertainment, becoming its largest shareholder.

Prosecutors accuse Kakao of buying 240 billion won ($173 million) worth of SM shares on 553 occasions in February 2023 at inflated prices in a deliberate effort to thwart a takeover bid by HYBE, the agency behind K-pop megastars BTS.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/unveiling-the-fiscal-blueprint-analysing-indias-economic-strategy-and-revenue-sources-743273">Unveiling the fiscal blueprint: Analysing India’s economic strategy and revenue sources</a>

HYBE had purchased a 14.8-percent stake from SM's founder, Lee Soo-man, and proposed buying more shares at 120,000 won each, but withdrew its attempt after SM's stock prices soared.

The Seoul Southern District Court approved an arrest warrant for Kakao founder Kim Beom-su, citing risks of him fleeing and destroying evidence, it said in a statement.

Authorities have also questioned other Kakao executives, prosecutors said.

At an emergency Kakao group meeting last week, Kim said that it was a "pity" that the situation had occurred while "group members are working together to renovate management and innovate AI-based technology".&nbsp;

He later said the charges against him were "not true".

"I believe the facts will be revealed in the end as I have never ordered or tolerated any illegal activities," Kim said, according to a press release sent to AFP by the company on Tuesday.

Experts said that the detention of the firm's head could cause problems for the company.

"Kakao's AI-based innovation will likely meet difficulty due to the absence of the head of the company, and the group will have to focus its efforts on eliminating total risk and judicial risk," said Choi Kyoung-jin, a law professor at South Korea's Gachon University.&nbsp;

"The risk of the group due to the leader being absent from Kakao will probably continue for a considerable period of time," he added.

"Kakao will need to reorganise its governance."

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

The billionaire founder of South Korean internet conglomerate Kakao was arrested early Tuesday, a Seoul court said, accused of manipulating stock prices during the acquisition of K-pop powerhouse SM Entertainment.

The billionaire founder of South Korean internet conglomerate Kakao was arrested early Tuesday, a Seoul court said, accused of manipulating stock prices during the acquisition of K-pop powerhouse SM Entertainment. Founded in 2010, Kakao has grown to be a sprawling empire and owns everything from a major online bank to South Korea's largest taxi-hailing app, plus KakaoTalk -- the country's biggest messaging app which is installed on 90 percent of phones. It also has a vast entertainment portfolio, encompassing music labels and talent management, which it augmented significantly last year by securing a controlling 39.87 percent stake in SM Entertainment, becoming its largest shareholder. Prosecutors accuse Kakao of buying 240 billion won ($173 million) worth of SM shares on 553 occasions in February 2023 at inflated prices in a deliberate effort to thwart a takeover bid by HYBE, the agency behind K-pop megastars BTS. Also read: Unveiling the fiscal blueprint: Analysing India’s economic strategy and revenue sources HYBE had purchased a 14.8-percent stake from SM's founder, Lee Soo-man, and proposed buying more shares at 120,000 won each, but withdrew its attempt after SM's stock prices soared. The Seoul Southern District Court approved an arrest warrant for Kakao founder Kim Beom-su, citing risks of him fleeing and destroying evidence, it said in a statement. Authorities have also questioned other Kakao executives, prosecutors said. At an emergency Kakao group meeting last week, Kim said that it was a "pity" that the situation had occurred while "group members are working together to renovate management and innovate AI-based technology". He later said the charges against him were "not true". "I believe the facts will be revealed in the end as I have never ordered or tolerated any illegal activities," Kim said, according to a press release sent to AFP by the company on Tuesday. Experts said that the detention of the firm's head could cause problems for the company. "Kakao's AI-based innovation will likely meet difficulty due to the absence of the head of the company, and the group will have to focus its efforts on eliminating total risk and judicial risk," said Choi Kyoung-jin, a law professor at South Korea's Gachon University. "The risk of the group due to the leader being absent from Kakao will probably continue for a considerable period of time," he added. "Kakao will need to reorganise its governance." Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Founder of South Korea's tech giant Kakao arrested for stock manipulation

China's Huawei Technologies saw its fastest growth in four years in 2023, with a rebound in its consumer segment and income from new businesses like smart car components accelerating its recovery from U.S. sanctions.

Revenue rose 9.63% from a year earlier to 704.2 billion yuan ($97.48 billion), with the consumer business contributing most to that figure, growing 17.3% to 251.49 billion yuan.

While Huawei did not break down the consumer figure, the segment includes its handset business, which saw a renaissance last year as the company returned to the mainstream 5G smartphones market with the Mate 60, apparently overcoming U.S. restrictions.

Also read:&nbsp;<a data-ctorig="https://www.wionews.com/business-economy/wion-business-wrap-the-top-business-stories-of-the-day-summarised-694780" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/wion-business-wrap-the-top-business-stories-of-the-day-summarised-694780&amp;sa=U&amp;ved=2ahUKEwjAqu7ap5mFAxVKamwGHTKcBgoQFnoECAMQAg&amp;usg=AOvVaw1PHWS-xDt_uSL86GRiQlPp&amp;arm=e" dir="ltr" href="https://www.wionews.com/business-economy/wion-business-wrap-the-top-business-stories-of-the-day-summarised-694780" target="_blank">WION&nbsp;Business&nbsp;Wrap | The top&nbsp;business&nbsp;stories of the day</a>

From 2019, the U.S. has restricted Huawei's access to U.S. technology, accusing the company of being a security risk, which Huawei denies.

Last year marked the third consecutive year of growth for the company after revenue plummeted by almost a third in 2021 when the company started to exhaust chip reserves, though revenue remains below its 2020 peak of 891.3 billion yuan.

Huawei was relatively muted about its achievement, doing away with the press conference and launch event it has held every year at least since the U.S. restrictions began.

In a press release, rotating chairman Ken Hu said the results were in line with forecasts.

"We've been through a lot over the past few years. But through one challenge after another, we've managed to grow."

At a launch event last year, Meng Wangzhou, Huawei's CFO and the daughter of the company's founder, announced that Huawei was no longer in crisis mode.

Net profit in 2023 rose by 144.5% to 87 billion yuan, with the net profit margin more than doubling on a year earlier to 12.35%.

Some of that came from ongoing payment from the sale of the Honor smartphone brand, which Huawei sold in November 2020, a company spokesperson said.

Also read:&nbsp;<a data-ctorig="https://www.wionews.com/business-economy/indias-business-travel-industry-poised-for-growth-expected-to-reach-382-bn-in-2024-695395" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/indias-business-travel-industry-poised-for-growth-expected-to-reach-382-bn-in-2024-695395&amp;sa=U&amp;ved=2ahUKEwjAqu7ap5mFAxVKamwGHTKcBgoQFnoECAIQAg&amp;usg=AOvVaw0T3_qDSGP2qxTCancvxZbq&amp;arm=e" dir="ltr" href="https://www.wionews.com/business-economy/indias-business-travel-industry-poised-for-growth-expected-to-reach-382-bn-in-2024-695395" target="_blank">India's&nbsp;business&nbsp;travel industry poised for growth</a>

While the company's core ICT infrastructure business remained stable, its cloud business grew by more than a fifth, generating revenue of 55.3 billion yuan.

Huawei's four-year-old smart car software and components business also saw major growth albeit from a lower comparison base, up 128.1% year on year to 4.7 billion yuan.

Last year Huawei announced it would spin off the smart car unit into a new company.

Earlier this month, Richard Yu, the managing director and chairman of Huawei's smart car solutions, announced the unit would likely turn a profit from April after losing billions of yuan in the past year, local media reported.

China's Huawei Technologies saw its fastest growth in four years in 2023, with a rebound in its consumer segment and income from new businesses like smart car components accelerating its recovery from U.

China's Huawei Technologies saw its fastest growth in four years in 2023, with a rebound in its consumer segment and income from new businesses like smart car components accelerating its recovery from U.S. sanctions. Revenue rose 9.63% from a year earlier to 704.2 billion yuan ($97.48 billion), with the consumer business contributing most to that figure, growing 17.3% to 251.49 billion yuan. While Huawei did not break down the consumer figure, the segment includes its handset business, which saw a renaissance last year as the company returned to the mainstream 5G smartphones market with the Mate 60, apparently overcoming U.S. restrictions. Also read: WION Business Wrap | The top business stories of the day From 2019, the U.S. has restricted Huawei's access to U.S. technology, accusing the company of being a security risk, which Huawei denies. Last year marked the third consecutive year of growth for the company after revenue plummeted by almost a third in 2021 when the company started to exhaust chip reserves, though revenue remains below its 2020 peak of 891.3 billion yuan. Huawei was relatively muted about its achievement, doing away with the press conference and launch event it has held every year at least since the U.S. restrictions began. In a press release, rotating chairman Ken Hu said the results were in line with forecasts. "We've been through a lot over the past few years. But through one challenge after another, we've managed to grow." At a launch event last year, Meng Wangzhou, Huawei's CFO and the daughter of the company's founder, announced that Huawei was no longer in crisis mode. Net profit in 2023 rose by 144.5% to 87 billion yuan, with the net profit margin more than doubling on a year earlier to 12.35%. Some of that came from ongoing payment from the sale of the Honor smartphone brand, which Huawei sold in November 2020, a company spokesperson said. Also read: India's business travel industry poised for growth While the company's core ICT infrastructure business remained stable, its cloud business grew by more than a fifth, generating revenue of 55.3 billion yuan. Huawei's four-year-old smart car software and components business also saw major growth albeit from a lower comparison base, up 128.1% year on year to 4.7 billion yuan. Last year Huawei announced it would spin off the smart car unit into a new company. Earlier this month, Richard Yu, the managing director and chairman of Huawei's smart car solutions, announced the unit would likely turn a profit from April after losing billions of yuan in the past year, local media reported.

China's Huawei continues rebound with strongest earnings growth since 2019

Halting production in japan until next month, daihatsu pledges compensation for 423 domestic suppliers directly affected by the crisis. The move follows a comprehensive safety investigation that led to the suspension of shipments for 64 models, including those under the toyota brand.

Daihatsu Motor to compensate suppliers as plants remain idled | World Business Watch

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Founder of South Korea's tech giant Kakao arrested for stock manipulation

China's Huawei continues rebound with strongest earnings growth since 2019

Daihatsu Motor to compensate suppliers as plants remain idled | World Business Watch