South Korea's financial regulator raided SM Entertainment's headquarters on Thursday over suspicions of stock manipulation. The Financial Supervisory

Key Highlights :

1. The Financial Supervisory Service (FSS) raided the headquarters of SM Entertainment over suspicions that South Korean tech giant Kakao Corp. manipulated stock prices in the process of acquiring shares of the K-pop powerhouse, SM.

2. Hybe, SM's rival agency behind global superstar BTS, filed a petition for a probe into the case with the FSS in February.

3. Last month, Kakao won the battle by securing a 40 percent stake in SM, becoming the largest shareholder of the agency.

4. In February, Hybe accused Kakao of manipulating SM's stock prices through another company to hinder Hybe from making a tender offer to secure a larger stake in SM.

5. Earlier this month, the FSS also raided offices of Kakao and its entertainment unit, Kakao Entertainment Corp.

     South Korea's Financial Regulator Raids SM Entertainment's Headquarters

     On Tuesday, South Korea's Financial Supervisory Service (FSS) raided the headquarters of SM Entertainment Co. over suspicions that South Korean tech giant Kakao Corp. manipulated stock prices in the process of acquiring shares of the K-pop powerhouse, according to financial sources.

     The Financial Supervisory Service (FSS) has been investigating the allegations after Hybe, SM's rival agency behind global superstar BTS, filed a petition for a probe into the case with the FSS in February.

     According to the sources, the FSS is looking into whether Kakao used its influence to drive up the stock prices of SM Entertainment, which it acquired in February for a reported $2 billion.

     The FSS is also reportedly investigating whether Kakao manipulated the stock prices of other companies in order to gain an advantage in its acquisition of SM Entertainment.

     SM Entertainment is one of the biggest entertainment companies in South Korea, with a roster of popular K-pop stars including Girls' Generation, Super Junior, and BTS. The company is also the parent company of Kakao's top K-pop rival, BTS.

     Kakao is one of the largest tech companies in South Korea and is majority-owned by the South Korean government.

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