Kakao Enterprise CEO Change... "Restructuring Focused on Cloud Business"

Kakao Enterprise has appointed Lee Kyung-jin, head of the Cloud Division, as the new CEO and will reorganize the company to focus on the cloud business.

On the 12th, Kakao Enterprise announced through an internal notice that current CEO Baek Sang-yeop has voluntarily resigned. Lee, the head of the division, has been appointed as the new CEO.

The leadership change is aimed at improving the business structure. Kakao Enterprise has been receiving financial support from its parent company Kakao and external investors but continues to operate at a loss. Last year, it recorded an operating loss of 140.5 billion KRW, an increase of 50 billion KRW compared to the previous year.

To improve profitability, the company will reorganize its business focusing on the cloud sector, which has high growth potential. Currently, Kakao Enterprise operates various businesses including cloud, work platforms, logistics platforms, artificial intelligence (AI) contact centers, and real-time video streaming platforms.

However, there are no plans yet for restructuring or reassignment in business units other than cloud. A Kakao Enterprise official stated, "While reorganizing the company centered on the cloud business, specific details or methods have not been decided."