Tech founders return to the front lines as downturn deepens

(Kakao)

Prominent founders are returning to the front lines of South Korea’s information technology industry as companies grapple with a prolonged economic slowdown and a challenging business environment.

According to industry sources Wednesday, Socar recently appointed former chief executive Lee Jae-woong as chief operating officer, marking his return six years after stepping down in the wake of legislation that effectively banned Tada’s ride-hailing operations. The move is seen as an effort to regain leadership in the mobility ecosystem amid rapid advances in autonomous driving and robotaxis.

Kakao founder and its Future Initiative Center head, Brian Kim, made his first official public appearance in two years earlier this month, visiting a training session for new recruits. While Kim has not formally declared a management comeback, his reemergence has stirred speculation across the IT sector.

The atmosphere mirrors last year’s return of Naver founder and board chairman Lee Hae-jin, who came back after seven years to spearhead global expansion and push the company’s sovereign AI strategy. Since his return, Naver has pursued aggressive deals, including a comprehensive share swap with Dunamu and acquisitions of Poshmark and Wallapop, alongside partnerships with Nvidia, Disney and Market Kurly.

Former lawmaker Kim Byung-kwan, founder of Webzen, has also decided to return. Webzen last month proposed appointing Kim as an internal director at an extraordinary shareholders’ meeting, during which he increased his stake to 28.61 percent by purchasing additional treasury shares.

Developer Supercat, closely tied to Nexon, has likewise reinstated its founder. As project cancellations, talent departures and declining performance mounted, Kim Won-bae stepped in as chief executive, concluding that new leadership was needed for the company’s survival.

The trend has produced tangible results in some cases. At Wemade, the return of former chief executive Park Kwan-ho was followed by a turnaround to profitability the next year, driven by swift investment decisions and restructuring.

Industry observers caution, however, that reliance on founder leadership also reflects a shortage of next-generation talent. While founders can galvanize organizations in the short term, companies risk long-term challenges if leadership development and governance reforms fail to keep pace.