[2022 National Audit] Namgung Hun and Hong Euntaek Debut at the Audit, "We Will Strive for Kakao's Win-Win Cooperation"

[Image source=Yonhap News]

[Asia Economy Reporter Yuri Choi] Namgung Hoon and Hong Euntaek, co-CEOs of Kakao, who made their debut at the National Assembly audit, emphasized their commitment to expanding efforts for mutual growth.

On the 7th, CEO Hong attended the National Assembly's Political Affairs Committee as a general witness and responded to a question from Choi Seung-jae, a member of the People Power Party, who asked whether the consent decree granted a pardon for Kakao's infringement on local small businesses by saying, "We will strengthen cooperation for mutual growth with local small businesses in accordance with the purpose of the system."

Regarding criticisms that the promise to reduce affiliates to avoid controversy over infringement on local small businesses was inadequately managed, CEO Hong said, "Although we engaged in mutual growth activities, there were ultimately shortcomings," and added, "We will strive to align with the purpose of the system."

The consent decree is a system where if a business operator voluntarily restores the problem to its original state or proposes remedies for damages to consumers or trading partners, the Fair Trade Commission accepts this and closes the case without investigating illegality. Some have criticized that this system grants a pardon allowing financially strong large corporations to resolve issues with money.

CEO Namgung also appeared as a general witness and addressed issues regarding Kakao Gift refund problems and allegations of domestic customer discrimination in Kakao Games' mobile game Uma Musume.

Regarding Kakao Gift, CEO Namgung explained, "The systemic part was prepared last March, and we were preparing to apply it first at Starbucks, but we will proceed quickly." Once the updated system is applied, it will be possible to use mobile gift certificates such as KakaoTalk Gift for amounts less than their value, and the remaining balance can be accumulated. Concerning the Uma Musume incident, he said, "There was a communication problem with users," and added, "I apologize to the users of Uma Musume."