Kakao Holds 5th Emergency Management Meeting
"Strengthening Responsibility Structure of Management Processes"
Kakao held its 5th community management meeting on the morning of the 27th at Kakao Pangyo Ajit in Seongnam-si, Gyeonggi-do, chaired by Kim Beom-su, Kakao founder and chairman of the management innovation committee. About 20 key community CEOs attended the meeting.
At the meeting, the details of the compliance and trust committee affiliate agreement discussed last week were shared and opinions were gathered. It was decided to strengthen the structure by reviewing internal management processes such as personnel, finance, and legal affairs within the Kakao community to clarify responsibilities.
This is interpreted as a move to reform the personnel system that caused Kakao's current crisis. Kakao has been criticized for some executives' misconduct and insufficient internal controls over these issues. This includes the resignation of former Kakao Pay CEO Ryu Young-jun amid the 'stock option embezzlement' controversy, as well as revelations that a Kakao finance executive used a corporate card to purchase 100 million won worth of game items.
In this regard, there is talk of a large-scale reshuffle of Kakao's management. Starting around March to April next year, the terms of 77 affiliate representatives, more than half of them, will expire. Major affiliates such as Kakao, Kakao Entertainment, Kakao Mobility, and Kakao Games are included in this group.
Chairman Kim said, "I strongly recommend thoroughly reviewing whether there are any lax parts in the management process and reforming the system so that the entire community can closely manage compliance, personnel, and finance aspects." He added, "I hope the management will actively cooperate with these changes and also take good care of the crew (employees) who may be worried during these difficult times."
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