ChatGPT and Proprietary AI to Be Integrated into KakaoTalk
Stablecoin Also Named as a Key New Business
Immediate Return to Management Unlikely
With Kim Beomsoo, founder and head of the Future Initiative Center at Kakao, being acquitted in the first trial, it is expected that Kakao Group will accelerate its new business ventures. There are projections that the group will invest in future growth engines such as artificial intelligence (AI), which it has already been prioritizing, as well as in a Korean won-based stablecoin.
According to the IT industry on October 22, Kakao has long been criticized for lacking large-scale investments in future businesses. The absence of founder Kim led to a period of instability within the group, preventing bold investments. This stood in stark contrast to Naver, another leading platform company, which, following the return of founder Lee Haejin earlier this year, has continued to make significant investments and launch new services, such as the merger with Dunamu, the acquisition of Wallapop, and the comprehensive introduction of AI across its services.
Immediately after the verdict, Kim Beomsoo told reporters, "I hope this serves as an opportunity to move away, even slightly, from the shadow of stock price manipulation and market rigging that has hung over Kakao. I am grateful to the court." Bae Jaehyun, former head of Kakao's investment division, who was indicted on the same charges as Kim, was also acquitted, as were Kakao Corporation and Kakao Entertainment, which were indicted together.
Kim Beomsoo has also endured personal hardships. After being detained and indicted last August, he spent 100 days in detention awaiting bail, during which he underwent cancer surgery, a subsequent reoperation, and hospitalization due to deteriorating health. In March, just before his second surgery, he stepped down as chair of the CA Council, the highest decision-making body and control tower of the group.
The key new businesses where Kakao Group is expected to pick up speed include AI and a Korean won-based stablecoin. At the end of this month, Kakao plans to launch 'ChatGPT for Kakao,' which integrates OpenAI's ChatGPT service into KakaoTalk, as well as 'Kanana in KakaoTalk,' an on-device AI service based on its proprietary large language model (LLM). This represents a major update, applying AI services comprehensively to KakaoTalk, the company's flagship service.
The Korean won-based stablecoin is also considered one of the group's main new business ventures. Kakao Group has formed a task force with its financial affiliates, such as Kakao Pay and Kakao Bank, to monitor related trends. Stablecoins are linked to fiat currencies like the US dollar or Korean won, making them less volatile in price. By securing a stable and universal payment method within its platform through stablecoins, Kakao can also strengthen its grip on financial infrastructure. This task force is jointly led by Kakao CEO Chung Shina, Kakao Pay CEO Shin Wonkeun, and Kakao Bank CEO Yoon Hoyoung.
With both Kim Beomsoo and Kakao Corporation acquitted, governance issues concerning the financial subsidiaries have also been resolved for now. Under the current Internet-Only Bank Act, an industrial capital entity must not have committed any legal violations, such as receiving a criminal fine, in the past five years to hold more than a 10% stake in a financial company. If a guilty verdict had affected Kakao's eligibility, the company would have been required to dispose of any Kakao Bank shares exceeding 10% within six months. As of the end of June, Kakao held a 27.16% stake in Kakao Bank, making it the largest shareholder.
However, it appears that it will take some time before Kim Beomsoo returns to his previous role. Due to health reasons, he has stepped down as chair of the CA Council and is currently only serving as head of the Future Initiative Center, remaining away from frontline management. Given his ongoing need for medical treatment, an immediate return to management seems unlikely.
With Kim Beomsoo's acquittal, the atmosphere inside Kakao is reportedly relatively calm, and there is a sense of relief that the cloud hanging over the company's future business initiatives has lifted. On this day, Kakao executives were said to have proceeded with their regular meetings as usual, without any special agenda.
In an internal announcement the previous day, Kakao CEO Chung Shina told employees, "I want to thank all members of the organization who have maintained Kakao's trust, balance, and accountability, working together to solve problems without wavering despite harsh external evaluations and difficult scrutiny. Kakao has consistently strived to restore public trust and improve its structure, facing complex challenges such as judicial risks and threats to credibility."
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