A court has extended the pretrial detention for Kakao Corporation founder Kim Beom-su, who faces allegations of stock manipulation in the company's acquisition of SM Entertainment.

The Seoul Southern District Court on Thursday approved renewal of Kim's detention until December 7, after he was indicted last month on charges of violating the Financial Investment Services and Capital Markets Act.
 
Kim and other company executives are accused of inflating the share prices of SM, one of the country's K-pop powerhouses, in a bid to obstruct a takeover earlier this year by Hybe, the parent company of BTS' management agency BigHit Music.

Prosecutors suspect Kakao schemed with a private equity fund operator to purchase around 240 billion won, or some 180 million U.S. dollars, worth of SM shares, driving up prices well above the 120-thousand won per share Hybe was offering small shareholders, thereby undermining Hybe's tender offer. 

Hybe eventually suspended the bid, allowing Kakao and its subsidiary to jointly secure a nearly 40-percent stake in SM to gain management control. Kakao is also accused of failing to fulfill its duty to declare their stock acquisition.