Kakao restructures Corporate Alignment Council

Kim Beom-su, left, and Chung Shin-a

South Korean platform giant Kakao Corp. is undergoing a comprehensive restructuring of its management system by transitioning its company control tower, Corporate Alignment (CA) Council, into a co-chair system. This includes creating multiple committees under the council that will play a significant role in the decision-making processes of the company’s subsidiaries.

Kakao announced on Tuesday that founder Kim Beom-su and Chief Executive Officer Nominee Chung Shin-a will serve as co-chairs for the CA Council.

On the same day, Kim met with the CEOs of 13 affiliated companies, where they decided on the new structure of the CA Council, an organization that coordinates internal relationships within the Kakao Group and forms consensus.

Under the new CA Council, various committees are planned, including the Management Innovation Committee and the Strategic Committee, which will review key performance indicators (KPIs), investments, and more for each affiliated company.

Each committee will identify agendas to be discussed at the group level within their respective areas, providing opinions on direction and policy. Based on these discussions, the co-chairs will formulate advisory and recommendation opinions for each affiliated company, taking responsibility for resolving group-wide issues in their respective areas.

The CEOs of the 13 affiliated companies, including Kakao, Kakao Games, Kakao Mobility, Kakao Bank, and Kakao Pay, can participate in up to three committees of their choice, alongside the Management Innovation Committee.

A department overseeing executive personnel at the group level and managing the Group Consultative Council will also be formed under the CA Council. The CA Council plans to refine its practical organization within a month and convene group consultative meetings from the following month to make decisions on key matters moving forward.

The previous four-member comprehensive system within the CA Council, covering management support, business, crisis management, and investments and which was reorganized in September 2023, will be dissolved.

“We need a growth direction and management system that aligns with societal expectations and trust,” Kim said. “We will commit to innovation in areas such as personnel, governance, branding, and corporate culture.”

Chung added that Kakao will move away from the “loose autonomous management approach of the past and strengthen our core leadership.”