Kakao's Kim Beom-su "Feeling Heavy Responsibility for Losing Social Trust" [Full Text]

Beom-su Kim, Chairman of the Kakao Board of Directors

[Asia Economy Reporter Buaeri] On the 20th, Kakao Chairman Kim Beom-su, who recently faced conflicts due to controversies over executives’ stock sell-offs, took steps to calm public sentiment with the announcement of Namgung Hun as the new CEO nominee.

In an internal notice that day, Chairman Kim said, "I feel a heavy responsibility for Kakao losing much of society’s trust," adding, "The best way to restore trust is to excel at future-oriented innovation."

Regarding nominee Namgung, he explained, "It is time to consider Kakao’s next vision, and we concluded that Namgung, who has prepared the group’s future, is the right person," and "He will take on the role of Kakao’s CEO and lead the business vision more actively."

Conscious of the deteriorated morale among employees, Chairman Kim emphasized, "To overcome this period, the participation of employees along with new leadership is essential," and "Under the new leadership system, we will create many channels and opportunities for more active communication with you, and I will also actively support this."

▶Below is the full text of Chairman Kim’s internal post

Hello, this is Brian.

I feel conflicted to speak again about new leadership just about 50 days after announcing the new CEO and posting messages of support and encouragement. During this process, Mason (CEO Yeo Min-soo) expressed his intention to resign out of affection and responsibility for Kakao, leading us to reconsider new leadership from scratch.

Unfortunately, Kakao seems to have lost much of the long-built trust of society recently. Feeling a heavy responsibility, I have repeatedly pondered ways to recover it. We proposed policies such as Kakao’s coexistence plan and executive stock sale guidelines, but ultimately, I believe that what society originally expects from Kakao?excelling at future-oriented innovation?is the best way to restore trust.

Also, although many community companies have grown based on KakaoTalk over Kakao’s 11 years, I judged that it is now time to consider the next vision for KakaoTalk. We opened a table to discuss the right person to realize future-oriented innovation and concluded on NK (nominee Namgung). NK has not only accumulated experience successfully growing Kakao Games but also prepared the community’s future as head of the Future Initiative Center. Now, he will take on the role of Kakao’s CEO and lead the business vision more actively.

As Kakao grows in scale and community, efficient and rational community management has become more important. Stefan (Kim Sung-soo, CEO of Kakao Entertainment), who has experience with multiple company listings, big corporations, and joined because he likes Kakao’s culture, will take charge of the CAC Center. NK will present a new vision as Kakao’s CEO, and Stefan will be responsible for stable coordination at the community level.

To overcome this period, the participation of the crew along with new leadership is essential. Under the new leadership system, we will create many channels and opportunities for more active communication with the crew, and I will actively support this. Please share your candid opinions and various suggestions.

Two years ago, marking Kakao’s 10th anniversary, I declared Season 2 and emphasized our role as agents of social problem-solving. Taking this opportunity, the board, new leadership, and crew will strengthen ESG management by considering future vision and inclusive growth based on mutual trust and constructive tension, and continue discussions with new leadership to truly become a culture-driven company. Thank you.