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Ex-Kakao chief to lead Kakao's digital insurance subsidiary

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By Lee Min-hyung
  • Published KST
  • Updated KST

By Lee Min-hyung

Choi Sae-hoon, CEO-nominee for KakaoPay's digital insurance subsidiary

Choi Sae-hoon, chief of KakaoPay's insurance business taskforce, will be the new leader of the fintech firm's non-life insurance subsidiary, set to make its debut as early as the end of 2021.

Tentatively named “Kakao General Insurance,” the subsidiary will be the fourth financial arm of Kakao, the nation's leading mobile platform operator. Kakao tapped Choi to be the head of the new financial subsidiary, as he is recognized for his management expertise in the digital insurance business.

Kakao has inherited experience in the insurance sector via Daum which launched the online car insurer, Daum Direct in 2003 ― long before it merged with Kakao on 2014. However, Daum reported losses during the first year of operation, amid fierce competition from existing big insurers.

In 2004, Choi emerged as a savior for the company, driving the firm's successful turnaround as its new CEO. At that time, he was only 37, but nevertheless succeeded in leading the firm's rebound through aggressive and differentiated marketing strategies.

But the company failed to achieve long-lasting success, and sold a 65-percent stake to German insurer ERGO in 2007.

Choi was then promoted to Daum Kakao's co-CEO in 2014. After stepping down as the leader of the company in 2015, he went on to pursue his career there as chief financial officer.

Starting last year, he has led a taskforce for the launch of KakaoPay's insurance business.

The industry expects Choi to generate an even more concrete and game-changing outcome this time around, based on Kakao's unrivaled platform dominance.

“Even if the digital insurance subsidiary is not be able to generate profits in the short period of time following the launch, Kakao will keep making investments until the business gets on track with stable revenues, just like Kakao's other financial subsidiaries have done so for the past few years,” an insurance industry source said.