South Korea’s Fair Trade Commission (FTC) is looking into the allegation that Kakao Entertainment had spread false rumors about idol groups under other agencies.

The antitrust watchdog dispatched its inspectors to the headquarters of the entertainment unit under Kakao Corp. on Wednesday.

The company was found to be behind the popular Facebook page, “Idol Issue,” known for posting various content related to Korean entertainment, including news, rumors, and controversies.

According to sources familiar with the matter, the FTC is questioning why Kakao had not specified it was the operator behind the Facebook page and whether it had intentionally ran smear campaign against idol artists of other agencies.

Kakao Entertainment apologized for causing the controversy and shut down the page, while denying it had spread false rumors.

The antitrust watchdog is carrying out another investigation on whether Kakao Entertainment abused its superior status to take away rights in web novels while hosting a contest.

By Pulse

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]