Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Kakao CEO nominee vows to regain public trust
Namkoong Whon, the CEO nominee of Kakao, speaks during an online press conference, Thursday. Courtesy of Kakao
By Baek Byung-yeul
By Baek Byung-yeul
Namkoong Whon, the CEO nominee for Kakao, vowed Thursday that the company will actively pursue entry into overseas markets and new businesses such as the metaverse in order to restore lost trust from shareholders and app users.
“I present the keywords of 'Beyond Korea' and 'Beyond Mobile' as the company's vision. Many people want us to go abroad and make money overseas rather than expanding further in the domestic market. I think we should focus on the global market,” Namkoong said during an online conference.
Kakao, the operator of Korea's largest mobile messenger app, has been embroiled in a series of scandals, such as abusing its dominant market position to encroach upon the territory of small businesses, as well as the actions of executives of its subsidiary unit, Kakao Pay, who were selling off stocks in December, 2021, just a month after it went public.
To overcome the worsening situation, Kakao appointed Namkoong, the chief of its Future Initiative Center and widely known as a key aide to Kakao founder Kim Beom-su, as its new CEO nominee in January. Namkoong will be eligible to work as CEO after being approved in a shareholders' meeting slated for March.
“It is judged that it is difficult to obtain public approval other than advancing into overseas markets,” he said.
Revealing the company's plans to expand into other countries, the CEO nominee said that the Japanese market will be its first destination. Kakao has been providing an online comics service via its Japanese subsidiary, Piccoma.
“As part of our plans to expand into overseas markets, we tried the Japanese market and the Southeast Asian market. We succeeded in generating profits by selling content such as online comics in Japan, but we failed in the Southeast Asian market,” he said.
“Our business in Japan is centered on Piccoma, an online comic service operator. And Kakao Games Japan is moving toward the game business there. Each affiliate is doing it separately, but we are thinking of integrating the Japanese business through the financial integration of Kakao Games Japan and Piccoma. We are taking Japan as the centerpiece of our global business and planning a strategy,” Namkoong added.
He reiterated that he will do his best to boost the company's stock price to 150,000 won. Since Kakao shares hit a record of around 180,000 won in June 2021, the company's stock price fell to 90,000 won, Thursday.
After accepting the CEO post, he promised that his stock options will only be exercised when the company's share price surpasses 150,000 won.
“I think we can regain the 150,000 won-level if we regain market trust and the market environment improves. My term in office will be two years, so I hope I can achieve that within two years,” the nominee said.