Prosecutors requested a 15-year prison sentence for Kakao Corporation founder and management innovation committee chair Kim Beom-su on charges of stock manipulation in the company's acquisition of SM Entertainment.

In addition to prison time, prosecutors are also seeking a fine of 500 million won, or around 359-thousand U.S. dollars, on charges of violating the Capital Markets Act.

The state agency said Kim "continuously voiced opposition," despite being briefed on ways to legally compete in SM's takeover process, and deserves criticism for being the end recipient of criminal proceeds.

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 by Hybe, the parent company of BTS' management agency BigHit Music.

Hybe eventually suspended the bid, allowing Kakao and its subsidiary to jointly secure a nearly 40-percent stake in SM to gain management control.