Kakao founder to take lead in management reform

Kim Beom-su, the founder and head of the Future Initiative Center of Kakao.

Kim Beom-su, the founder and head of the Future Initiative Center of South Korean platform giant Kakao Corp., is expected to take the lead in overhauling the management that is going through its largest-ever crisis.

According to the company’s announcement on Monday, Kakao will establish an internal committee dedicated to management reform. Kim will serve as the chairman of the committee.

Kakao Chief Executive Officer Hong Eun-taek, Kakao Entertainment Corp. CEO LEE Jin-soo, Kakao Mobility Corp. CEO Ryu Geung-sun, and other key CEOs will also be involved in the corporate reform effort.

Kim had stepped down from the chairmanship of the board in March of last year but has now taken the forefront in resolving the crisis.

“Until now, we have respected the authority to ensure autonomy and responsible management for each community,” Kim said. “But as the founder and major shareholder, I will take responsibility and lead the way in overcoming the crisis, returning to the principles of our founding.”

Kim further emphasized that, as the country’s major platform, the Kakao community “should no longer perceive itself as a startup,” highlighting “responsible management to meet the societal expectations placed on Kakao today.”

Earlier, Kakao also established an outside compliance body in a move to rejuvenate itself.

The management reform committee will play a leading role in driving change and innovation for the entire Kakao community until the current crisis is overcome.

Meanwhile, Kakao Mobility has decided to hold discussions with four taxi associations next week to gather industry opinions and push for a comprehensive revision of franchise taxi fees.

Kakao is currently under investigation by financial authorities for its alleged involvement in market manipulation during the takeover of SM Entertainment Co. stocks in February.

Its subsidiary, Kakao Mobility, also faces an audit review due to suspicions of alleged fraudulent accounting.