Kakao’s key affiliates under increasing regulatory pressure
Major affiliates of Kakao, the country's leading mobile platform operator, are facing growing regulatory pressure, which its labor union says stems from the company's excessive spin-offs of subsidiaries. The once-promising mobile startup is rapidly losing the trust of both investors and customers due to its ongoing involvement in multiple regulatory issues. On Monday, Kakao Entertainment was slapped with a 390 million won ($265,000) fine for deceptive advertising practices. The company promoted its music content through social media channels without officially disclosing its ownership of those accounts, according to the latest investigation by the Fair Trade Commission. Other Kakao subsidiaries are also being investigated for allegations of unfair business activities. Kakao Mobility, which operates the nation’s leading taxi-hailing service, is under investigation on suspicion of inflating the firm’s revenues. Last week, the prosecution launched a search and seizure into the firm’s office in Seongnam, Gyeonggi Province, as well as the residences of its key executives. Jung Joo-hwan,
Mar 24, 2025By Lee Min-hyung