Although the SM acquisition battle between Hive and Kakao has concluded, the Financial Supervisory Service is known to continue to investigate violations of the Capital Markets Act, such as market price manipulation related to the mass purchase of SM stocks.
Financial Supervisory Service (President Lee Bok-hyeon)announced on the 17th that it would continue to investigate the situation related to market manipulation of SM stock raised by Hive regardless of Hive’s suspension of the SM acquisition process. An official from the Financial Supervisory Service said on the same day, “We will continue the investigation regardless of the management situation of SM.”
The Financial Supervisory Service is investigating the connection between the entity that accumulated the bulk of SM stocks and Kakao, and whether Kakao violated its disclosure obligations. If it is judged that there is suspicion as a result of the FSS investigation, the agenda is presented to the Securities and Futures Commission of the Financial Services Commission or skipped and the case is directly transferred to the prosecution. Regarding this, the Financial Supervisory Service is in a position that it is not yet at the stage of discussing the transfer.
Previously, on the 28th of last month, Hive submitted a petition to the Financial Supervisory Service requesting an investigation, claiming that there was interference with the tender offer due to the large purchase of SM shares by other corporations in the process of conducting the tender offer to secure management rights of SM. The investigation by the Financial Supervisory Service is likely to focus on whether there was an intention to obstruct the tender offer in such a large-scale buying act.
Meanwhile, as the agreement between Kakao and Hive is reached, there is a prospect that Hive may withdraw the complaint from the Financial Supervisory Service. Hive announced on the 12th that it would stop the SM acquisition process. A lawyer from a large law firm explained, “Hive will be able to consider withdrawing the petition if Kakao fulfills the terms of the agreement.”
However, even if Hive withdraws the complaint from the Financial Supervisory Service, the Financial Supervisory Service is expected to continue the investigation. An official from the Financial Supervisory Service said, “Hive did not express its intention to withdraw the petition. Even if it is withdrawn, it has nothing to do with the investigation,” he said. He said, “We are investigating whether there are any charges that should be handed over to investigative agencies regardless of the management agreement.”
Reporters Park Seon-jeong and Lim Hyun-kyung sjpark·hylim@
