Kakao's Kim Beom-su: "Will Lower Fees Even If Market Dominance Increases" [2021 National Assembly Audit]

[Image source=Yonhap News]

[Asia Economy Reporters Kang Nahum and Boo Aeri] Kim Beom-su, Chairman of the Kakao Board of Directors, said on the 7th, "Even if the platform becomes active, I believe there is room to lower the commission fees."

Chairman Kim made this remark during a National Assembly Industry, Trade, Energy, Small and Medium Business Committee audit, responding to a question from Lee Seong-man, a member of the Democratic Party of Korea, who asked, "Can you maintain the policy of lowering commission fees even if market dominance increases?"

He said, "Ideally, platforms should operate in a way that increases user benefits and supplier profits," adding, "I think Kakao Mobility's ecosystem is not yet in an active stage."

When asked whether he agrees with the need for regulatory policies on big tech companies, he replied, "Large companies like Kakao certainly require appropriate checks and balances," but added, "However, many startups challenging the platform are at a stage where support and nurturing are necessary."

When Representative Lee pointed out the platform business model by citing portals that place products at the top of the platform simply by paying advertising fees, Chairman Kim said, "It is not a structure where you have to pay money to be placed at the top of the platform; rather, a platform business where high-quality products can be positioned at the top is the recommended model."

He continued, "Platform business has not been around for long in our country," and said, "Even Kakao Mobility has not yet reached the profit stage and is in the process of creating good cases through various experiments. We will make every effort to responsibly create good examples."

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