Kakao Entertainment Appoints Kwon Kisu and Jang Yunjung as New CEOs
Leadership Renewal with External Figures Instead of Kim Beom-su's Close Associates
Mobility and Other Affiliate Personnel Changes Expected to Follow
Kakao has embarked on a personnel reshuffle within its affiliates by replacing the head of Kakao Entertainment. The company made its reform intentions clear by wielding the personnel knife starting with Kakao Entertainment, which is at the center of judicial risks. In particular, instead of close aides of Kim Beom-su, Kakao's founder and co-chairman of the CA Council, it has appointed outsiders to erase the so-called 'brother management.'
On the 19th, Kakao Entertainment announced that it had appointed Kwon Ki-soo, Chief Operating Officer (COO), and Jang Yoon-jung, Global Strategy Officer (GSO), as the new co-CEOs. The two appointees are expected to officially take office after going through the board of directors and the general shareholders' meeting.
From the left, Kwon Ki-su and Jang Yoon-jung, newly appointed co-CEOs of Kakao Entertainment [Photo by Kakao Entertainment]
Neither of the two appointees has a special connection with Co-chairman Kim. Kwon and Jang come from Daum Communications and Sony Music Entertainment, respectively. Kwon joined Daum in 2002 and served as head of the management planning division and Chief Financial Officer (CFO). He naturally joined Kakao after Daum merged with Kakao. Jang is a former analyst at the U.S. consulting firm Frost & Sullivan. He was the CEO of Sony Music Entertainment Korea, one of the world's top three record companies, before being recruited as GSO of Kakao Entertainment.
This leadership change marks the biggest shift in Kakao Entertainment since its founding. CEOs Kim Sung-soo and Lee Jin-soo are the 'founding contributors' who built Kakao's entertainment business. Kim led Kakao M, the predecessor of the media and music division of Kakao Entertainment, in 2019, and Lee founded Podotree, the predecessor of the story division, in 2010.
By replacing the two symbolic CEOs, the company intends to pursue change under new leadership. It aims to cut ties with close aides who brought crisis to Kakao and block the fallout from judicial risks. CEOs Kim Sung-soo and Lee Jin-soo have been with Co-chairman Kim since their NHN (now Naver) days. Kim established a connection with Co-chairman Kim in 2003 while working at On-Media by providing subsidiary Baduk TV content to NHN. When he joined Kakao in 2019, it was at Co-chairman Kim's invitation. Lee is also an NHN alumnus. When Co-chairman Kim was the head of NHN's U.S. branch, Lee was the head of the U.S. sales division, working closely together. He joined iWilab, Kakao's predecessor, as vice president in 2010 and received investment from Co-chairman Kim when founding Podotree. However, their positions have been shaken due to judicial risks. CEOs Kim Sung-soo and Lee Jin-soo were investigated by prosecutors over allegations of stock price manipulation involving SM Entertainment. Kim is also under investigation for allegedly causing losses to the company by acquiring the drama production company 'Baram Pictures' at an inflated price.
Personnel changes are expected to continue across affiliates, starting with Kakao Entertainment. CEOs of key affiliates such as Ryu Geung-seon of Kakao Mobility and Cho Gye-hyun of Kakao Games are also considered replacement candidates. These companies have faced ongoing internal and external issues or are led by close aides of Co-chairman Kim. Additionally, Shin Won-geun, CEO of Kakao Pay, and Moon Tae-sik, CEO of Kakao VX, are approaching the end of their terms at the end of March. Co-chairman Kim is reportedly focusing on Kakao's personnel restructuring, having stepped down from the board of the public interest foundation 'Brian Impact' last November.
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