'Kakao's Closer' Namgoong Hoon's Battle with Illness Confession

[Asia Economy Reporter Yuri Choi] Namgung Hoon, CEO of Kakao, has attracted attention by confessing that he is suffering from 'diabetic peripheral neuropathy.' He is known as the 'relief pitcher' who appeared every time during crises as the right-hand man of Kim Beom-su, chairman of Kakao's board, but he has suddenly encountered a health setback.

On the 26th, CEO Namgung announced on his Facebook that he is battling diabetic peripheral neuropathy. It is a complication of diabetes where nerves are damaged after long-term diabetes, causing symptoms such as numbness in the hands and feet.

CEO Namgung said, "Three weeks ago, numbness started in my toes, and symptoms have appeared on my fingers and back as well," adding, "I almost stopped exercising due to COVID-19 and gained weight, which is presumed to have caused the neuropathy." He continued, "After the symptoms appeared, I was shocked and have been managing my diet and blood sugar," and "I have my first medical appointment the day after tomorrow."

The news of CEO Namgung’s health deterioration came six months after he took the helm at Kakao, creating a restless atmosphere inside and outside the company. He was appointed earlier this year as the relief pitcher to save Kakao in crisis. Amid the confusion caused by the 'eat-and-run controversy' involving Kakao Pay’s management and the stock price that had risen to as high as 170,000 won but then dropped to the 80,000 won range, he started with the heavy tasks of 'restoring trust' and 'innovation.'

From the beginning, he took bold steps to set the tone. Until the stock price recovered to 150,000 won, he froze all incentives and stock option exercises and declared he would only receive the legal minimum wage. In contrast to portal and game company CEOs who receive salaries in the hundreds of millions of won, CEO Namgung receives less than 2 million won per month.

As a nominee, he presented the vision of 'Beyond Korea, Beyond Mobile' and also worked to persuade shareholders. In June, he concretized this with the 'Kakao Universe.' The plan is to expand KakaoTalk, which is based on acquaintances, to interest-based connections, moving beyond Korea to global markets, and beyond mobile to the metaverse.

Contrary to CEO Namgung’s intentions, Kakao’s stock price has been weak. On the 26th, it closed at 59,700 won, marking a 52-week low. Compared to early this year, it has halved. This is the direct result of successive interest rate hikes in the United States.

There are many challenges piled up as much as the stock price recovery. A national audit is scheduled for next week. Following last year, another platform audit is expected, and CEO Namgung’s name is on the witness list. Having faced difficulties last year due to controversies over infringement on small businesses, attention is focused on how CEO Namgung will respond this year.

There is also a long way to go business-wise. The 'Open Chat,' which was positioned as the forward base for the metaverse, has just begun pilot advertising to improve profitability. Next, they plan to launch an independent app called 'Open Link' and expand services into the metaverse.

Meanwhile, CEO Namgung said on Facebook that day, "It is still early, so daily life is okay," and "I will work hard to recover."