Kim Beom-su Speaks Out on 'Alley Market Infringement' Controversy: "A Wake-Up Call for Society... Will Build a Win-Win Model" (Comprehensive)

- Establishment of a 300 Billion Won Fund to Expand Support for Small Business Owners
- Withdrawal of Flower, Snack, and Salad Delivery Brokerage Services
- K Cube Holdings Focuses on Creating Social Value

[Asia Economy Reporters Kang Nahum and Boo Aeri] Kakao, which has faced public criticism for its sprawling business expansion, has decided to establish a fund of 300 billion KRW over five years to expand support for small business owners. Additionally, it will withdraw from some businesses that sparked controversy over encroaching on local commercial districts.

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

First, Kakao will prepare a 300 billion KRW win-win fund over the next five years to sustain growth together with platform workers and small business partners.

It will also focus its business on areas that can enhance IT innovation and user welfare, and will organize and withdraw from affiliate businesses that do not align with this, such as those involved in local commercial district controversies.

The affiliate undergoing the biggest change is Kakao Mobility. Kakao Mobility will first withdraw from the flower, snack, and salad delivery brokerage service for corporate clients.

It will also abolish the AI dispatch system called Smart Call, which increases taxi call success rates. Previously, Kakao Mobility had changed the Smart Call fare policy from the existing 1,000 KRW to a range of 0 KRW to a maximum of 5,000 KRW but canceled it following public criticism.

The Pro Membership fee for taxi drivers will also be reduced from 99,000 KRW per month to 39,000 KRW. Pro Membership is a program that offers priority dispatch benefits.

A win-win council with franchise taxi operators will also be formed. A council involving about 100 taxi transport operators in Seoul has been launched, and regional “Franchise Taxi Win-Win Councils” (tentative name) will be established nationwide to discuss establishing a healthy franchise business structure with corporate and franchise taxi operators.

Furthermore, Kakao Mobility will also pursue win-win measures with designated driver service drivers. Instead of the existing fixed 20% commission, a ‘variable commission’ ranging from 0% to 20% depending on supply and demand will be expanded nationwide. They plan to actively prepare win-win plans through discussion channels with designated driver operators conducted via the Shared Growth Committee.

K Cube Holdings, effectively Kakao’s holding company, will transform into a company focused on creating social value such as future education and talent development. The two children of Kim Beom-su, Kakao’s chairman of the board, who had been involved in a ‘succession process’ controversy, will also leave the company.

K Cube Holdings is 100% owned by Chairman Kim and was recently investigated for omission of data 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.