Former Kakao Brain CEO Kim Il-du Investigated Over Alleged Misuse of 9 Billion Won in Investment Funds
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- 2026-09-16 17:01:20
- Updated
- 2026-09-16 17:01:20
[Financial News] Kim Il-du, former CEO of Kakao Brain, Kakao's artificial intelligence (AI) subsidiary, is under police investigation after being repeatedly reported over allegations including the misuse of investment funds.
According to police on the 16th, Seoul Seocho Police Station has been investigating more than 10 complaints filed between November last year and July this year seeking Kim's punishment for alleged breach of trust and fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
The complainants reportedly allege that Kim used investment funds raised for OpenResearch, an AI search service startup, for purposes different from those originally explained during the fundraising process.
A police official said, "The alleged losses claimed by the complainants total approximately 9 billion won," adding, "We are verifying how the funds were used and the specific facts of the case."
One of the companies that provided business services to OpenResearch also reportedly filed a fraud complaint against Kim, alleging that it had not received payment totaling tens of millions of won.
In an apology released late last year, Kim admitted to gambling and using private loans. He said that he first visited a casino during a business trip to Las Vegas in April 2024, then borrowed money to cover his losses and eventually turned to private lenders.
Kim previously served as CEO of Kakao Brain, where he led Kakao's AI research and development, including the Korean-language AI model KoGPT. He later founded OpenResearch, which develops AI search services, and became its CEO.
[email protected] Lee Dong-hyuk Reporter