Kakao Received Massive Benefits from Moon Administration... Ruling Party Hits Back at 'Monopoly' Controversy

Joo Ho-young, floor leader of the People Power Party, is attending the Emergency Response Committee meeting held at the National Assembly on the 17th and delivering opening remarks. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Lee Ji-eun and Kwon Hyun-ji] In the wake of the 'Kakao outage' incident, the political sphere has launched criticism against Kakao, with the ruling party suggesting that the monopoly issue should be examined, arguing that Kakao has received enormous benefits over the past five years.

Yang Geum-hee, senior spokesperson for the People Power Party, stated in a commentary on the 17th, "Under the previous government's five-year policy of 'unicorn company cultivation,' Kakao enjoyed tremendous benefits. However, efforts to improve consumer rights, such as enhancing the quality of services, were neglected."

He pointed out, "(Kakao) has been obsessed only with business expansion through octopus-like mergers and acquisitions and initial public offerings. It enjoyed freedom but neglected responsibility," adding, "The Kakao outage incident revealed a total failure."

Spokesperson Yang said, "While the fact that corporate freedom must be guaranteed remains unchanged, if the principle of self-regulation leads to a loss of self-correction, the government cannot help but reconsider its management and supervision methods," and added, "The People Power Party and the Yoon Seok-yeol administration will work together with the opposition to devise measures for damage recovery and prevention of recurrence."

Joo Ho-young, floor leader of the People Power Party, also said at an emergency committee meeting held at the National Assembly, "So far, Kakao has expanded like an octopus, with as many as 134 affiliates as of August this year, covering messenger services, transportation, shopping, and finance, but it has yet to operate its own data center," adding, "From the perspective of national security and protecting citizens' lives, it is a situation that cannot be left solely to individual companies, so the National Assembly must step in and thoroughly revise related laws."

He further criticized the monopoly issue, saying, "As many experts and the public point out the need to prevent excessive monopolies due to this incident, the ruling and opposition parties must agree and promptly create good measures to prevent monopolies and establish effective safety measures."