Kakao Chairman Kim Beom-su's Children Working at K Cube Holdings... "Unrelated to Succession"

"Two Children Have Been Working at KCube Holdings for a Year"
"Stock Gift Unrelated to Succession"

[Asia Economy Reporter Kang Nahum] It has been confirmed that the two children of Kim Beom-su, Chairman of the Kakao Board of Directors, who recently received a gift of Kakao shares worth about 27 billion KRW, are actually working at 'K Cube Holdings,' which is regarded as the holding company of Kakao.

A Kakao official stated in a phone interview with Asia Economy on the 25th, "We understand that Chairman Kim's son Sangbin and daughter Yebin have been working at K Cube Holdings for about a year."

According to the Fair Trade Commission disclosure, as of the end of 2019, K Cube Holdings had 5 employees and paid 1.4 billion KRW in salaries that year. Although the company appears small on the surface, K Cube Holdings is the second-largest shareholder of Kakao (11.21%).

Chairman Kim controls Kakao and about 100 affiliated companies through his 13.74% stake in Kakao and K Cube Holdings (in which he holds 100% ownership).

With the confirmation of the two children’s employment at K Cube Holdings, there is also an interpretation that the recent stock gift might be part of a succession plan. Previously, Sangbin and Yebin each received 60,000 Kakao shares from Chairman Kim. Based on the previous day's closing price, 60,000 shares are valued at 27.78 billion KRW.

A Kakao official said, "K Cube Holdings is Chairman Kim's personal company and is neither a subsidiary nor an affiliate of Kakao," adding, "We understand it is unrelated to succession."