"Resolving Conflicts with the Industry is a Priority"… Kakao Takes the Lead with a Cooperation Proposal

Kakao Mobility Discusses Cooperation with Taxi Groups and Startups
Kakao Healthcare and Kakao VX Also Resolve Technology Disputes

Kakao has moved to resolve conflicts with external business partners it had clashed with over allegations of business idea theft and monopoly controversies. Prioritizing conflict resolution over business expansion, it took the initiative to propose cooperation plans first. Kim Beom-su, Kakao’s founder and head of the Future Initiative Center, has taken charge of crisis management and is accelerating reform efforts.

Kakao Mobility will hold a second round of talks with four taxi organizations (National Taxi Labor Union Federation, National Democratic Taxi Labor Union, National Private Taxi Transport Business Association Federation, National Taxi Transport Business Association Federation) on the 30th. This will be the second negotiation meeting in two weeks following the first on the 13th. Since the agenda was set at the first meeting, including commission restructuring, fair dispatch, and franchise structure changes, detailed discussions will take place on the 30th. A representative of the four taxi organizations said, "We will discuss based on the improvement plans prepared by Kakao Mobility," adding, "We also plan to coordinate future discussion schedules to prepare a taxi business reform plan within the year."

Kakao Mobility has also sought solutions with a startup it had conflicts with over allegations of business idea theft. In October, Kakao Mobility launched 'Kakao T Trucker,' entering the middle logistics market. During this process, the startup Hwalmulman claimed its business idea was stolen, which Kakao Mobility denied. Although tensions seemed to escalate with Hwalmulman submitting petitions to the Fair Trade Commission and the Ministry of SMEs and Startups demanding resolution of the technology theft issue, the atmosphere has changed. Recently, after meetings between working-level staff and senior executives, they agreed to devise cooperation plans. Im Young-mook, CEO of Hwalmulman, said, "Kakao Mobility decided to propose a cooperation plan first, and based on that, we will discuss and decide on withdrawing the petition."

On the 21st, at the National Assembly, Yoon Jae-ok, floor leader, Han Mu-gyeong, chairperson of the People Power Party's Small and Medium Business Committee, Lee Young, Minister of SMEs and Startups, and representatives of participating companies are taking a commemorative photo at the win-win cooperation agreement ceremony between large corporations and startups hosted by the People Power Party's Small and Medium Business Committee. Photo by Kim Hyun-min kimhyun81@

Other Kakao affiliates that had disputes with startups over technology theft allegations have also found compromise solutions. Kakao Healthcare faced conflicts over allegations of stealing ideas related to the blood sugar management platform of the startup Doctor Diary, and Kakao VX over the golf data platform of SmartScore. These companies participated in the 'Large Corporation-Startup Win-Win Agreement Ceremony' led by the People Power Party, the Ministry of SMEs and Startups, and the Korean Intellectual Property Office, agreeing to accept the mediation proposals presented at the party level. Accordingly, Kakao Healthcare postponed the launch schedule of its blood sugar management service from within this year to February next year. It also decided to contribute to a win-win growth fund supporting the R&D of healthcare startups. Although the service was ready and the domestic launch was delayed, causing a domino effect on overseas service schedules, priority was given to coexistence with startups. Kakao VX decided to discontinue its domestic control solution business, which had been disputed, and proceed only overseas.

The reason Kakao’s affiliates have actively worked to resolve conflicts with other business operators lies with Kim Beom-su. Kim has stepped forward to reform the group, which is facing all-around crises including market manipulation allegations. Since the 30th of last month, he has been holding emergency management meetings every Monday to oversee affiliate issues. He also serves as the chairman of the management reform committee. On the 23rd, the Compliance and Trust Committee (Compliance Committee), an external monitoring body launched by Kim, is scheduled to hold its first meeting. Once the Compliance Committee officially launches, it is expected that reform efforts will accelerate further.