Kakao Mobility Requests 'Sale Suspension' to Kakao… Kakao "Respects and Supports"

[Asia Economy Reporters Kang Nahum, Lee Seungjin] Kakao Mobility has requested its parent company Kakao to withdraw the sale and proposed to create a new growth direction plan. Kakao expressed respect for this proposal and showed a positive stance.

On the 25th, Kakao Mobility announced, "We will form a 'consultative body' with the crew and propose to the Kakao Community Alignment Center (CAC) a plan to grow together with society within the Kakao community."

In this regard, it is known that Ryu Geungseon, CEO of Kakao Mobility, recently met with CAC officials to inform them of the employees' opposition to the sale and conveyed his intention to concretize and propose measures for Kakao Mobility's social coexistence to Kakao.

Kakao also responded to Kakao Mobility's position by saying, "Since Kakao has not decided on the sale, various discussions can take place," adding, "Since Mobility is independently forming a consultative body to create a plan to grow together with society, Kakao respects and supports this and looks forward to seeing what plan will emerge."

Kakao Mobility will hold a meeting at 4 p.m. on the same day with executives and employees participating. The meeting is expected to discuss the formation of the consultative body and directions for Kakao Mobility's social coexistence.

The Kakao labor union, which has opposed the sale of Kakao Mobility, welcomed these movements from both sides. Seo Seungwook, head of the Kakao labor union branch, said, "We support and welcome the proposal to discuss Mobility's growth plan together with society," adding, "We will actively participate in the consultative body for the sustainable growth of the Mobility society and seek ways for Kakao Mobility to coexist with society together with management, employees, and platform workers."

Lee Jeongdae, staff of the Kakao Mobility branch, also said, "It is fortunate that we are discussing sustainable growth plans even now, and I will actively participate in the consultative body for coexistence with social stakeholders."

Meanwhile, Kakao has been considering selling part of its stake in Kakao Mobility to the private equity fund MBK Partners, changing from the largest shareholder to the second largest shareholder. Kakao holds 57.5% of Kakao Mobility's shares, while the private equity fund TPG Consortium holds 29%, and the Carlyle Group holds 6.2%.

Jae Hyun Bae, Chief Investment Officer of Kakao, who is leading the sale negotiations, said at a meeting with Kakao Mobility employees on the 18th, "After last year's National Assembly audit, we considered removing 'Kakao' from the Kakao Mobility name and separating the affiliate," adding, "Since there is a critical view of a company with a monopolistic position on the Kakao messenger platform, share adjustment was inevitable."