South Korean civil society accuses former Kakao chairman and Klaytn-related executives of corruption and misappropriation of public funds

Odaily Planet Daily reported that the South Korean civil society "Economic Democracy 21" filed a complaint with the Seoul Southern District Prosecutor's Office, where the virtual asset crime joint investigation team is located, accusing former Kakao chairman Kim Bum-so and executives of Klaytn affiliated companies of violating the "Specified Act on Increased Penalties for Economic Crimes (Corruption and Misappropriation of Public Funds) and violated the Capital Markets Act. The person in charge of Economic Democracy 21 stated in the complaint that in 2018, Kakao launched Klaytn through its subsidiary, issued the cryptocurrency KLAY, and earned hundreds of billions of KRW in illegal profits. This was not the company’s normal business, but became a crime. A small number of insiders carve up KLAY in various names such as investment, compensation, service fees, etc.; in addition, there is corruption in KLAY's private placement process. At the same time, Klaytn’s market value once exceeded 10 trillion won, but after plummeting, it is currently hovering around 500 billion won. (Hankyung) Previously, on August 10, according to a report by Korea Broadcasting Corporation Television (KBS), South Korean financial regulators searched the office of the founder of Kakao Bank.