Kakao Announces Win-Win Plan: "Establishing a 300 Billion Won Fund and Withdrawing from Some Businesses" (Update)

[Asia Economy Reporter Kang Nahum] Kakao has established a fund of 300 billion KRW over five years to expand support for small business owners and decided to withdraw from some businesses that sparked controversy over infringing on local markets.

On the 14th, Kakao held a meeting with the heads of its major affiliates and finalized a win-win plan with these details.

First, the company will focus on developing businesses centered on IT innovation and enhancing user welfare, and will consider reorganizing and withdrawing from affiliate businesses that do not align with this, such as those involved in local market controversies.

Along with this, to sustain growth with platform workers and partners such as small business owners, Kakao plans to establish a 300 billion KRW win-win fund over five years at the community level.

Kakao Chairman Kim Beom-su’s K Cube Holdings, which holds 100% of the shares, will transform into a company focused on creating social value such as future education and talent development. Currently, K Cube Holdings is under investigation for omission of materials submitted to the Fair Trade Commission.

Chairman Kim said, "The recent criticisms are a strong alarm ringing through society," adding, "It is time for Kakao and all its affiliates to boldly abandon the growth methods pursued over the past decade and undergo fundamental changes for growth that fulfills social responsibility."

He added, "We must establish a model where Kakao and its partners can grow together, in line with the essence of a better world created by technology and people."

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