| 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 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 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. 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. | 
