Kakao Union Reports Executive for Charging 100 Million KRW on Company Card for Game Items

"Prevalent Distrust in Management... Executive Compensation Must Be Transparent"

The Kakao labor union has reported the Chief Financial Officer (CFO) of the finance group to the police for using the corporate card to purchase game items worth 100 million won.

The Kakao branch of the National Chemical, Textile, and Food Industry Labor Union filed a complaint against the Kakao CFO on the 19th on charges of breach of trust and embezzlement. On the 4th, Kakao's Standing Ethics Committee ordered the CFO, who had used the corporate card to purchase game items worth 100 million won, to fully reimburse the misused amount and imposed a three-month suspension.

The Kakao Branch of the National Chemical Fiber Food Industry Labor Union filed a complaint with the police on the 19th against the CFO of Kakao on charges of breach of trust and embezzlement.
[Photo by Choi Yuri]

The Kakao labor union stated, "While Kakao affiliates are facing financial crises and experiencing direct employment insecurity such as voluntary retirement, the CFO was spending time and money elsewhere," adding, "The majority of Kakao employees and the labor union are not just disappointed but angry." This incident has occurred amid accumulated resentment over the previous management's pursuit of private interests, such as stock option 'eat-and-run,' leading to significant distrust toward the entire management.

Regarding the report against the executive, the union cited reasons including ▲the CFO and unregistered executive, despite their important roles, committed acts causing harm to the company, ▲there remains an issue of whether the game assets acquired were privately misused, and ▲although disciplinary action was taken belatedly, more severe accountability is necessary.

The union demanded that the company enhance transparency in executive compensation and support systems, continuously monitor management activities, and ensure transparency in the executive appointment process. Seo Seung-wook, head of the Kakao labor union branch, said, "Seeing news about the misuse of the corporate card by an executive, I could only feel a sense of emptiness about how far Kakao can fall," adding, "The disclosed facts are painful, but we will use this as an opportunity to devise measures on how Kakao can move forward."