Kim Il-doo, the former CEO of Kakao Brain, a subsidiary of Kakao specializing in artificial intelligence (AI), has been sued for allegedly misusing investment funds from an AI startup he founded.
According to Yonhap News Agency, the Seocho Police Station in Seoul reported on September 16 that it has received over ten complaints against Kim since November of last year, alleging breach of trust and fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.
The complainants claim that Kim used the investment funds raised for his AI search startup, Open Research, for purposes different from those originally stated. The amount in question is approximately 9 billion won.
Some complainants allege that the funds were used for personal purposes, including gambling and loan sharking, and are demanding their return. The police are currently investigating the specific uses of the funds and verifying the claims made by the complainants.
One of the partner companies that provided services to Open Research has also filed a separate fraud complaint against Kim, claiming it has not received payment for work amounting to tens of millions of won.
In a public apology issued at the end of last year, Kim admitted to his gambling and loan sharking activities. He stated that he began borrowing money to recover gambling losses after first visiting a casino during a business trip to Las Vegas in April 2024, and he acknowledged that he lied during the borrowing process.
While leading Kakao Brain, Kim was responsible for the development of Kakao's AI research, including the Korean-language generative AI model 'KoGPT' and the image generation AI 'Kalo.' He later founded Open Research in July 2024, launching the AI search service 'oo.ai.'
Open Research initially attracted attention in the AI search sector by securing 10 billion won in investments, but the service was reportedly discontinued in April of this year.
The police are investigating the allegations regarding the misuse of investment funds and the claims of unpaid fees from partner companies.
* This article has been translated by AI.
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