Kakao Affiliates Surge 162% in 5 Years... Three Times the Average of Large Corporations

[Asia Economy Reporter Kang Nahum] It has been revealed that the growth rate of Kakao's affiliates exceeds three times the average of large conglomerates.

On the 23rd, Song Gap-seok, a member of the Democratic Party of Korea, announced that this was the result of analyzing the 'growth rate of affiliates of large business groups (hereinafter referred to as large conglomerates)' on the Fair Trade Commission's Corporate Group Portal.

Specifically, Kakao's affiliates increased by 162%, from 45 in 2016 when it was incorporated as a large conglomerate to 118 this year (domestic affiliates), recording the highest growth rate among 71 large conglomerates.

Kakao's business expansion was distinctly different in scale compared to other large conglomerates. While Samchully and KCC showed similar growth rates, their numbers increased from 16 to 42 and from 7 to 18 respectively, showing a significant difference in scale compared to Kakao.

The total number of affiliates of all large conglomerates subject to disclosure on the Corporate Group Portal increased by 50%, from 1,736 in 2016 to 2,612 this year. Samsung, ranked first in total assets, had no change in the number of affiliates, remaining at 59 during the same period, while Hyundai Motor, ranked second, showed a 4% increase, and SK, ranked third, showed a 72% increase. Naver decreased by 37%, from 71 affiliates in 2017 when it was incorporated as a large conglomerate to 45 this year.

Representative Song criticized, "Kakao has abandoned innovation and focused solely on maximizing profits, rapidly encroaching on the survival areas of small business owners such as taxis, designated drivers, hair salons, nail shops, English education, quick services, and screen golf," adding, "Instead of hastily announcing measures such as a 300 billion won coexistence fund and partial withdrawal from some businesses without concrete plans, it should invest in new industries for the future and establish and implement fundamental coexistence cooperation plans with small business owners."