Asia Tech Wire (July 17) -- South Korean prosecutors have requested the arrest of Kim Beom-soo, the founder of South Korean Internet giant Kakao.

The Seoul Southern District Prosecutors' Office on Wednesday requested a court to arrest Kim for violating capital markets law in South Korea.

The prosecutors said they have obtained sufficient evidence in the case of Kim's alleged stock market manipulation.

According to Korean authorities, Kim allegedly invested 240 billion won in SM shares during Kakao's acquisition of SM Entertainment in February last year, in order to inflate the stock price and hinder the public takeover by rival Hybe, the owner of boy band BTS.

He also allegedly failed to report his large shareholding to financial regulators in the process.

Last week, Kim underwent questioning at the prosecutors' office about the case.