[2021 National Assembly Audit] Kakao's Kim Beom-su "Apologetic to Shareholders for Stock Price Decline"

Kim Beom-su, Chairman of Kakao, appeared at the National Assembly's hearing on the Fair Trade Commission held by the National Assembly's Political Affairs Committee on the 5th and took the witness oath. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporters Kang Nahum, Boo Aeri] Kim Beom-su, Chairman of the Kakao Board of Directors, expressed regret and apologized for the decline in Kakao's stock price due to social criticism.

On the 5th, Kim appeared as a witness at the National Assembly's Political Affairs Committee audit and responded to a question from Kim Byung-wook, a member of the Democratic Party of Korea, asking, "How do you evaluate the dissatisfaction of Kakao shareholders?" by saying this.

However, regarding the criticism that the continuous IPOs of subsidiaries such as Kakao Bank, Kakao Games, Kakao Pay, and Kakao Mobility are lowering the shareholder value of the parent company Kakao, Kim said, "The reason Kakao was able to grow so quickly was largely because we gave authority to our subsidiaries and attracted investments to rapidly advance the business," adding, "I believe this has helped raise Kakao's stock price."

When asked if Kakao plans to continue listing its subsidiaries in the future, he said, "Since some companies have already received investments, some will proceed with IPOs, and companies that are not aimed at the global market will be reorganized."

Regarding criticism that Kakao is strengthening its dominance in the domestic market rather than expanding overseas, Kim said, "Kakao only started making money 2 to 3 years ago. Before that, it was a company we worried might not survive, so we also feel some bewilderment about how the company has become what it is today," adding, "Global expansion is our dream and the challenge of all our employees, so we are working hard on it now."

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