Kakao's real-life K-drama

Hello, it’s Yoolim in Seoul. Korean dramas have become popular the world over with their captivating mix of opulent wealth and glamor, plot [View in browser]( [Bloomberg]( Hello, it’s Yoolim in Seoul. Korean dramas have become popular the world over with their captivating mix of opulent wealth and glamor, plot twists and tightly-held secrets. More than a few of those elements showed up in Seoul this past week. But first... Three things you need to know today: • Snapchat redesigned its app to keep youngsters off [TikTok and Instagram]( • Hezbollah alleged Israel orchestrated [an attack using exploding pagers]( • Russian propaganda is targeting [presidential candidate Kamala Harris]( Shaken Kakao Last Wednesday, I traveled to a district court in Seoul to watch the first hearing of Brian Kim’s trial. He’s the billionaire founder of Kakao Corp., one of the internet pioneers of South Korea, a company with as much reach and influence here as Alphabet Inc.’s Google in the US. Kim, who denies any wrongdoing, is accused of [rigging prices]( last year during the takeover battle for K-pop powerhouse [SM Entertainment Co.]( It’s the highest-profile tech trial of the year and extends a long tradition of prosecuting corporate tycoons who may have overreached. You can read my [full exposition]( of the allegations, though needless to say, the whole affair has rattled investors and set back Kakao’s quest to become a dominant player in Korea’s entertainment industry. On an unseasonably warm September day, the founder arrived for his court appointment in a smart suit, belying the fact he’s been in detention since July. During the prosecution’s opening argument, 58-year-old Kim sat still, gazing into a wall. His lawyers said Kakao’s actions amounted to nothing more than an investment. Over the next few months of courtroom proceedings, the two sides will debate over the key issue: Did Kim intentionally interfere with a public tender offer by rival Hybe Corp. during Kakao’s bid for SM? Prosecutors allege Kakao spent 240 billion won ($181 million) in stock trading to artificially inflate SM’s stock price in an effort to fend off its rival suitor. They aim to prove Kim’s role by summoning witnesses involved in the acquisition process. The trial will spotlight a colorful cast of characters – some connected to Kakao, some not. One of them is a private equity investor who has been accused of colluding with Kakao executives around those stock trades. The prosecutors showed an impressive level of granular detail in their allegations. At 9:14 a.m. on Feb. 28, 2023, Kakao Chief Investment Officer Bae Jae-hyun picked up the phone and asked his colleague to start buying the SM stock, they said. “Start buying right now!” prosecutors cited Bae as saying. By the end of the day, SM’s stock traded 6% higher and was above Hybe’s buyout offer. More details will come out. The prosecution submitted more than 2,200 pieces of evidence at the hearing. The presiding judge hinted that’s probably too many and stressed that he would like to move the case along efficiently and expediently. At stake is the reputation of one of the country’s entrepreneurial role models. A few years earlier, Kim had been ascendant. He built a personal fortune of $14 billion (at its [peak]( on a succession of businesses that created an internet empire, which now provides much of the country’s 50 million people with messaging, mobile banking, gaming and taxi-hailing services. Having come from a modest background — Kim as a boy shared a room with seven family members — his wealth briefly surpassed [Samsung Electronics Co.]( Executive Chairman Jay Y. Lee to make him the country’s richest person. That has already plummeted to around $3.2 billion as of last week. Kim will now have the opportunity to argue his case and try to restore the confidence lost in the company he founded.—[Yoolim Lee](mailto:yoolim@bloomberg.net) The big story The AI boom rolls on. Blackrock and Microsoft announced a plan to raise [$30 billion for a fund]( to bankroll data centers, energy facilities and other infrastructure for AI. And Microsoft is deepening its partnership with  G42 by establishing [two AI centers in Abu Dhabi](. One to watch [Mizuho analyst Jordan Klein discusses Intel’s deal to manufacture chips for Amazon on Bloomberg Technology.]( Get fully charged JPMorgan Chase considers taking over the Apple credit card that [Goldman is trying to drop](. California Governor Gavin Newsom says he is worried about the potential “chilling effects” of AI safety legislation that would impose new [requirements on AI companies](. TikTok is becoming a source of news [for more Americans](. More from Bloomberg Bloomberg Tech: Humanity has always relied on technology to drive growth. With the emergence of artificial intelligence, tech companies will affect the economy, media and health like never before. Join executives, investors and business leaders in London on Oct. 22 to discuss the risks and rewards of this new age. [Buy tickets today](. Get Bloomberg Tech weeklies in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends - [Q&AI]( for answers to all your questions about AI Follow Us Stay updated by saving our new email address Our email address is changing, which means you’ll be receiving this newsletter from noreply@news.bloomberg.com. Here’s how to update your contacts to ensure you continue receiving it: - Gmail: Open an email from Bloomberg, click the three dots in the top right corner, select “Mark as important.” - Outlook: Right-click on Bloomberg’s email address and select “Add to Outlook Contacts.” - Apple Mail: Open the email, click on Bloomberg’s email address, and select “Add to Contacts” or “Add to VIPs.” - Yahoo Mail: Open an email from Bloomberg, hover over the email address, click “Add to Contacts.” Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Tech Daily newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](