Estimated Stock Option Profit Reaches 9.5 Billion KRW
No Profit Realization Yet
Kakao Mobility has reportedly seen its former CEO exercise stock options amid ongoing prosecution investigations into allegations of call manipulation and revenue inflation.
According to the information technology (IT) industry on the 23rd, former Kakao Mobility CEO Jung Joo-hwan is said to have exercised stock options on Kakao Mobility shares that have reached maturity.
This information will be recorded in the business report to be disclosed at the end of this month, following the Kakao Mobility shareholders' meeting scheduled for this week.
The estimated profit from former CEO Jung's stock option exercise is expected to reach 9.5 billion KRW according to industry estimates. However, it is reported that no sale of the shares has been made, so no profit realization has occurred.
Stock options refer to the right of a company's executives and employees to purchase company shares at a predetermined price within a certain period. Since the profit increases when the stock price rises, it is commonly used in the IT industry as an incentive for employees who contribute to performance.
Former CEO Jung designed Kakao Taxi as a new business for Kakao. He took the helm when Kakao Mobility was spun off in 2017 and returned to Kakao in 2020.
Earlier, the Financial Investigation Division 2 of the Seoul Southern District Prosecutors' Office began a search and seizure on the morning of the 20th at three locations, including the office in Bundang-gu, Seongnam City, and residences of executives and employees, regarding allegations of revenue inflation at Kakao Mobility. The prosecution is investigating after receiving related materials from the Securities and Futures Commission concerning the overstatement of Kakao Mobility's operating revenue and operating expenses.
In November last year, the prosecution also conducted a search and seizure on Kakao and Kakao Mobility related to allegations of call manipulation and call blocking. Kakao Mobility is also accused of directing calls to its affiliated taxi drivers under the brand 'KakaoT Blue.'
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