Kakao Will Not Sell Kakao Mobility

Withdrawal After 65 Days Due to Employee Opposition

[Asia Economy Reporter Seungjin Lee] Kakao has withdrawn its intention to sell Kakao Mobility 65 days after announcing the review of the sale.

Kakao Community Alignment Center (CAC) announced on the 18th that it will halt the review of changes in the shareholder structure of Kakao Mobility.

In June, Kakao was caught up in rumors of selling Kakao Mobility. On the 15th of the same month, Kakao admitted the review of the sale through a disclosure, stating, "We are considering various measures to enhance shareholder value of Kakao and ensure the continuous growth of Kakao Mobility."

After it became known that Kakao planned to sell part of its stake in Kakao Mobility to MBK Partners, changing from the largest shareholder to the second largest shareholder, employees strongly opposed the plan, leading to ongoing turmoil. Eventually, Ryu Geung-seon, CEO of Kakao Mobility, officially requested Kakao CAC last month to postpone the sale of shares and submitted a win-win plan to Kakao CAC.

After receiving the win-win plan on the 16th, Kakao announced two days later that it would halt the review of the sale, stating, "We will respect the will for sustainable growth with society derived by the labor and management of Kakao Mobility and support the concretization and execution of this."

Hong Eun-taek, co-CEO of Kakao, stated, "Kakao Mobility and Kakao CAC will strive to solve transportation issues based on sustainable innovation that society can empathize with."