[2022 National Audit] Kakao's Paid Service First Compensation Amounts to 40 Billion Won... "Will Also Compensate Free Users"

Kim Beom-su, head of Kakao Future Initiative Center, attended the comprehensive audit of the Ministry of Science and ICT and related audit target organizations held at the National Assembly on the 24th, and apologized for the Kakao outage. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Lee Seung-jin] Kakao's primary compensation amount for paid service damages caused by the data center fire has reached 40 billion KRW.

On the 24th, at the National Assembly Science, Technology, Broadcasting and Communications Committee comprehensive audit, Kakao CEO Hong Eun-taek responded to independent lawmaker Park Wan-joo's inquiry, stating, "The expected compensation amount for (the first phase of service) damage is 40 billion KRW."

Following the data center fire, Kakao announced individual compensation plans such as extending the validity period of usage tickets and providing cash to paid service customers of six major affiliates, including Kakao Entertainment and Kakao Mobility.

Kakao reiterated its position that it will prepare compensation measures for free service users separately.

Regarding compensation for those excluded from the first phase of damage compensation, Kim Beom-su, head of Kakao Future Initiative Center, responded to Democratic Party lawmaker Kim Young-joo's inquiry, saying, "To avoid delayed response, we will accept damage reports until next Tuesday, estimate the scale of damage, and promptly prepare compensation plans."

Including compensation plans for free users as well as paid users, Kakao's cost burden is expected to increase further. Kakao has been accepting damage cases since the 19th, and about 45,000 cases have been collected in just five days. The plan is to accept damage cases for two weeks until next Tuesday and prepare compensation plans.

Earlier, Kim said, "As you know, there are many indirect damages, so we are facing difficulties in estimating the scale of damage," but added that both indirect and direct damages are being calculated.

When asked, "Do you have a firm intention to compensate for damages related to this incident?" he answered, "Yes," expressing a strong will to compensate.