Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Kakao to beef up reform drive in 2024
Kakao Ventures CEO Chung Sin-a, who was nominated as the next Kakao CEO, replies to questions from reporters after a meeting of company executives at its building in Seongnam, Gyeonggi Province, Dec. 18. Yonhap
By Park Jae-hyuk
Kakao is preparing for various reform measures this year to reverse the negative public sentiment toward the company, which worsened last year in the aftermath of a series of alleged irregularities involving its top executives, according to industry officials, Monday.
Kakao Ventures CEO Chung Sin-a, who will begin to lead Kakao in March, said last month that she would start meeting over 1,000 employees in person this month to listen to their opinions. She added that Kakao founder Kim Beom-su will also attend the meetings.
“I will do my best for Kakao not to miss the timing (for change),” Chung told reporters on Dec. 18. “I will think about what to do next after listening to the opinions of our employees and the company’s reform task force.”
Once she assumes the leadership, Kakao is expected to replace the executives of its affiliates.
Last month, the Kakao founder indicated his intention to carry out a large-scale executive reshuffle, emphasizing the necessity of renovation.
The Kakao union has also picketed to urge the resignation of the CEO of Kakao Entertainment, as the affiliate sparked the worst-ever crisis since Kakao’s foundation, due to its acquisition of SM Entertainment last year. Kakao executives are under investigation for their alleged manipulation of SM Entertainment’s stock price, which is believed to have been intended to prevent HYBE from acquiring the K-pop agency.
There is also speculation about a possible transformation of the emergency meetings of Kakao executives, which have been held every Monday since the company vowed reform measures in October.
Given that meetings were not held on Christmas and New Year’s Day, the company is expected to change their schedule and format, so that executives can avoid questions from the media on their way to the meetings.
However, Kakao is still facing possible penalties and sanctions, as prosecutors and financial and antitrust authorities are investigating the company's alleged manipulation of SM Entertainment’s stock price and unfairly high commissions charged to taxi drivers for Kakao Mobility’s taxi-hailing service.
Amid the legal risks, Kakao failed last year to launch its generative artificial intelligence service and acquire several foreign companies.