South Korean internet giant Kakao – Under investigation for multiple antitrust and securities violations – appointed A new CEO is trying to right the ship. Shina Chung, who ran the company’s venture division, will be moved to the company’s top position.
According to the company, Mr. Chung will officially assume the position after the next board of directors meeting and general meeting of shareholders in March next year. She will be Kakao’s first female CEO, and her appointment is intended to signal that the company is now in emergency reform mode.
In a statement, Chung said the company will “manage the company proactively and responsibly” to meet society’s expectations and standards. “Kakao doesn’t have much time, so we don’t want to miss this opportunity for change.”
Kakao founder Kim Bum-soo hinted at a new leader at Kakao during an internal meeting on Monday, saying, “Kakao has reached a point where we must experiment with fundamental change. Establishing new leadership to guide Kakao.” I will do it.”
Image credits: Kakao CEO candidate Shina Chong
Kakao, which operates the hugely popular super app of the same name, leads the country in services such as messaging and on-demand transportation services like Uber. But that top position came at a price.
In October, Kakao’s chief investment officer (CIO) Jaehyun Bae was appointed. arrested After Kakao, accused of stock price manipulation obtained Belonged to K-Pop agency SM Entertainment in August. If Kakao’s CIO and other executives are convicted, Kakao The country’s financial regulator could force it to sell at least 10% of its stake in online banking arm Kakao Bank. South Korea’s current internet banking law requires that non-financial companies must not have violated financial laws, fair trade laws, or tax evasion laws in the past five years in order to hold more than 10% of the voting rights of a mobile-only bank. It has established. Like Kakao Bank.
Separately, just last month, South Korean President Yun Seok-Yeol Kakao’s taxi dispatch division, exclusive action of Kakao Mobility. The company’s claim is that The app’s algorithm was manipulated so that taxis were given priority to Kakao franchise taxi drivers who were registered as paid Kakao members, over non-Kakao taxi drivers.
Korean antitrust regulators have already In February, Kakao Mobility was fined approximately $20.3 million for improper service.. cacao mobility is As of September, it accounts for approximately 74% of the domestic ride-hailing market., is separately trying to lower the temperature of this controversy.it was announced today Taxi driver fees will be reduced from 5% to 2.8%. We plan to revise our membership system next year.
Founded in 1995 on South Korea’s Jeju Island, Kakao (officially started as an internet search engine known as Daum) is now South Korea’s super app, with KakaoTalk being the country’s most popular messaging app. , offers online taxi hailing service Kakao Mobility. banking platform Kakao Bank, music streaming app Melon, and webtoon platforms Tapas Media and Radish. The company has been actively pursuing M&A deals in South Korea over the past few years and also has global ambitions. Kakao has more than 140 subsidiary companies as of October.
Chung, who worked at Boston Consulting Group, eBay Asia and Naver before joining Kakao Ventures in 2014 to invest in local startups, will be given the job she deserves. .
Source: techcrunch.com
