Jeongsina CEO "Strengthening Corporate Sustainability"
Kakao is engaging in win-win cooperation with partners such as small business owners. This effort aims to resolve negative images like neighborhood market infringement and restore trust by strengthening ESG (Environmental, Social, and Governance) management.
According to the '2023 Kakao ESG Report' released on the 11th, Kakao has provided a total of 21.2 billion KRW in support funds to 60,939 businesses wishing to send messages via the Talk Channel as of last month. After supporting about 45,000 small business owners with approximately 13.3 billion KRW from August 2022 to March 2023, an additional 8 billion KRW was provided to about 16,000 people over the course of one year and two months.
The support for sending messages via the Talk Channel is one of the benefits Kakao created to help small business owners build loyal customers. It supports 300,000 KRW in message sending costs on KakaoTalk channels so that small business owners can secure customers and conduct marketing. Kakao evaluates that sending messages through the Talk Channel results in an annual sales increase effect of 25.5 million KRW.
Kakao’s subsidiary, Kakao Makers, is also running 'Jegabeochi,' a distribution support project for agricultural, livestock, and fishery products. Through this project, producers can distribute 'imperfect products' of the same quality, and consumers can purchase them at more affordable prices. As of February this year, the cumulative transaction amount and sales volume reached 30 billion KRW and 5,300 tons, respectively. Kakao is also focusing on digital transformation and education through a memorandum of understanding (MOU) with the Federation of Small and Medium Business.
Kakao’s active ESG management is aimed at renewing its negative image caused by past sprawling management and neighborhood market infringement. Previously, Kakao faced criticism for ventures such as beauty salons and flower delivery, and was hit by adverse events including allegations of market manipulation involving SM Entertainment.
Following criticism, Kakao withdrew from businesses like flower delivery, which had the potential to infringe on small business sectors, and disposed of all its 38.92% stake in Kakao Hairshop worth approximately 20 billion KRW.
Kakao is establishing a total of 300 billion KRW in a win-win fund to be utilized by 2028, supporting not only small business owners but also digital content creators, the taxi industry, startups, and others.
Jung Shin-ah, CEO of Kakao, emphasized in the report, "We aim to secure social trust and strengthen corporate sustainability," adding, "We plan to continuously carry out the promised win-win programs and fund executions to create a win-win ecosystem with key partners."
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