Prosecutors Seek 10-Year Prison Sentence for Former Kakao Entertainment CEO Over 'Baram Pictures High-Priced Acquisition'

[Financial News] Prosecutors have sought a 10-year prison sentence for former Kakao Entertainment CEO Kim Seong-su, who was brought to trial on charges of acquiring the drama production company 'Baram Pictures' at an inflated price.
According to the legal community on the 13th, the previous day, the 15th Criminal Division of the Seoul Southern District Court (Chief Judge Yang Hwan-seung) held a final hearing for former CEO Kim and former Kakao Entertainment Investment Strategy Division Head Lee Jun-ho, who were indicted on charges of breach of trust, bribery, and receiving bribes under the Act on the Aggravated Punishment of Specific Economic Crimes.
On this day, the prosecution argued that the acquisition of Baram Pictures was "an obvious breach of trust, not a normal acquisition," and sought a 10-year prison sentence and a fine of 1.25 billion won for former CEO Kim. They also requested an 8-year prison sentence for former Division Head Lee, who was also brought to trial.
They were accused of conspiring to have Kakao Entertainment acquire the drama production company Baram Pictures, which was actually owned by former Division Head Lee, at an inflated price in 2020, causing a loss of 31.9 billion won to the company. The prosecution found that former Division Head Lee gained a profit equivalent to 31.9 billion won in exchange for selling the company, and former CEO Kim received 1.25646 billion won from former Division Head Lee.
Former Division Head Lee is also accused of misappropriating 1.05 billion won out of 6.05 billion won received in 2017 from another content production company for drama planning and development costs for personal use, such as real estate purchases and loan repayments.
In previous trials, they denied the charges, stating that "the acquisition of Baram Pictures was a legitimate acquisition conducted through an appropriate evaluation process and was part of a rational business judgment process."
The sentencing hearing is scheduled to be held at 10 a.m. on September 30.

welcome@fnnews.com Jang Yu-ha Reporter