[2021 National Audit] Kakao's Kim Beom-su "Commission Should Gradually Decrease as User Activity Increases"

Kim Beom-su, Chairman of Kakao, attended the National Assembly's inspection of the Fair Trade Commission held by the National Assembly's Political Affairs Committee on the 5th and responded to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Buaeri] Kim Beom-su, chairman of the Kakao board, expressed his position on the controversy over Kakao Mobility's franchise taxi commission being excessive, stating on the 5th that "as users become more active, the commission should gradually decrease."

Chairman Kim appeared at the National Assembly's Political Affairs Committee audit in the afternoon and explained, "From the perspective of creating a taxi ecosystem, the profit structure should be designed as a win-win structure between the company and its partners," adding, "Currently, it is an early stage where various experiments are being conducted."

Min Byung-duk, a member of the Democratic Party of Korea, criticized Chairman Kim, saying, "At first, they provided services at low prices or for free to eliminate competitors and secure market dominance, then engaged in typical monopolistic behavior," and pointed out that "a 20% franchise taxi commission is excessive."

In response, Chairman Kim explained, "I heard that practically, about 5% is being returned to reduce the burden," and added, "The platform's stakeholder interests have not yet been settled."

He continued, "I apologize for causing controversy," and emphasized, "The CEO of Kakao Mobility also sympathizes, so many corrective measures will be introduced."