Consumer Group Files Complaint Alleging Kakao's Aiding and Abetting Violation of Capital Markets Act

[Asia Economy Reporter Seongpil Cho] Consumer organizations have reported Kakao Corporation to the prosecution on charges including aiding and abetting violations of the Capital Markets Act.

The nonprofit organizations Consumer Together and the Financial Consumers Federation announced on the 4th that they filed a complaint against Kakao at the Seoul Central District Prosecutors' Office through lawyer Dayeon Hwang (Law Firm Hye). Lawyer Hwang, who submitted the complaint on behalf of the consumer groups, stated, "All accounts impersonating securities firm consultation channels, analysts, and fund managers to provide investment advice are illegal accounts violating the Capital Markets Act," adding, "When receiving reports of identity theft, Kakao should have immediately deleted the illegal accounts and taken measures to prevent financial fraud damage." She continued, "Ultimately, while Kakao has been standing by idly, the damage is directly falling on ordinary citizens."

Earlier, a media outlet reported in March that "Kakao has been ignoring reports about fund managers and analysts who advertise investment consultations by stealing identities." Lawyer Hwang said, "Through this case, although operating the platform, Kakao has not fulfilled its responsibility to consumers and has instead become a breeding ground for new types of financial fraud such as smishing. I will fulfill my role as a representative to correct this wrongful reality."

This content was produced with the assistance of AI translation services.