[2021 National Audit] Kakao's Kim Beom-su: "K Cube Holdings Is Not a Company Created for Tax Evasion"

Kim Beom-su, Chairman of Kakao, attended the National Assembly's inspection of the Fair Trade Commission held by the National Assembly's Political Affairs Committee on the 5th, responding to questions from lawmakers. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Kang Nahum and Boo Aeri] Kim Beom-su, chairman of Kakao's board, strongly denied allegations of indirect tax evasion operations involving K Cube Holdings, Kakao's de facto holding company.

On the 5th, appearing as a witness at the National Assembly's Political Affairs Committee audit, Kim dismissed the accusation by Yoon Kwan-seok, a member of the Democratic Party of Korea, who questioned whether "K Cube Holdings was operated as a loss-making company for tax evasion purposes," saying, "The deficits are due to stock-collateralized loans, but it is not a company established for tax evasion."

Regarding suspicions that the 1.4 billion KRW retirement payment received by Kim Hwa-young, former CEO of K Cube Holdings and Kim's younger brother, was intended to pay stock gift taxes, Kim said, "The retirement procedures were conducted within the legal framework," adding, "The stock gifts were given to all family members related to me, and I understand that CEO Kim paid the stock gift tax by selling part of the shares."

On criticisms that the retirement payment to former CEO Kim was excessive, he said, "I heard that tens to hundreds of billions of KRW in profits were made through asset management, so I consider it a performance bonus," but also admitted, "Even I think the retirement payment is somewhat high."

Regarding controversies over Kakao's sprawling expansion, Kim stated, "We will boldly improve and accelerate efforts on parts that are socially criticized and controversial."

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