Kakao's Kim Beom-su: "So Absorbed in Growth That I Neglected Those Around Me... Will Return to My Original Intentions" (Comprehensive) [2021 National Assembly Audit]

- Attendance at the National Assembly Industry, Trade, and Energy Committee Audit on the 7th
- "Commitment to creating a better world through technology was weak... Will return to the original intention"
- "Will maintain commission reduction policy even if market dominance increases"
- Large-scale quota system in the designated driver market "It is inappropriate to block market share by law"

[Image source=Yonhap News]

[Asia Economy Reporters Kang Nahum and Boo Aeri] Kim Beom-su, Chairman of the Kakao Board of Directors, bowed his head once again on the 7th during the National Assembly’s Industry, Trade, Energy, Small and Medium Enterprises Committee’s audit, saying, "I think I made the mistake of being intoxicated with growth along with the CEOs of the Kakao community and neglecting to look around." He promised to prepare and disclose practical measures to coexist with the industry as soon as possible.

At the hearing of the National Assembly’s Industry, Trade, Energy, Small and Medium Enterprises Committee, where he appeared as a witness, Kim said in response to lawmakers’ questions about his reflections, "I will strive to ensure that the entire Kakao community can be reborn through the recent controversies."

Kim said, "Although we externally announced our commitment and philosophy to create a better world through technology, it was very insufficient," and added, "I will return to Kakao’s original intention."

He continued, "Kakao has reached a certain growth trajectory, but many of its affiliates have shown forms of reckless expansion or following existing customs due to being intoxicated with growth," and said, "We will thoroughly review internally at Kakao, distinguish what we should aim for and what areas we should avoid, and then disclose practical measures."

Kim also reaffirmed his intention to reduce fees on various platforms such as Kakao Mobility. In response to Lee Sung-man, a Democratic Party lawmaker’s question, "Can you maintain the policy of lowering fees even if the market dominance increases?" he answered, "I think there is room to lower fees even if the platform becomes more active."

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

When asked whether he agrees that regulatory policies are necessary for big tech companies, he replied, "Large companies like Kakao obviously need appropriate checks and balances," but added, "However, many startups challenging platforms are at a stage where support and nurturing are needed."

[Image source=Yonhap News]

When lawmaker Lee criticized the platform business model by citing portals that place products at the top of the platform just by paying advertising fees, 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 quality products can be positioned at the top should be encouraged."

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

Regarding the claim that a total volume regulation system for large corporations should be introduced in the designated driver market, Kim expressed a negative stance. When Justice Party lawmaker Ryu Ho-jeong asked, "There is a coexistence plan to limit the market share of large corporations in the wired call and app call markets. Can you accept this?" he replied, "I am not well-versed in the law, but I am not sure if it is right to block market share by law."

Kim also addressed criticism of Kakao’s indiscriminate corporate acquisitions. When Democratic Party lawmaker Lee Dong-joo pointed out, "Kakao has acquired companies recklessly, and among 118 affiliates, 17 have zero sales and 62 have sales below 10 billion won," Kim said, "Kakao invests in technology companies with many talents based on future growth potential, so we do not prioritize current operating profits."

Meanwhile, a brief commotion occurred during Kim’s entry into the National Assembly for the audit due to friction with representatives of designated driver companies waiting outside. Around 3:20 p.m., when Kim appeared at the National Assembly main building, representatives of the Korea Designated Driver Federation shouted, "Are you going to kill designated driving?" During this process, a sign made of glass frame was broken as federation representatives, security team members, and Kakao officials got entangled.

A federation representative criticized, "Kakao Mobility is monopolizing the designated driver market. If not today, when else can we meet Chairman Kim?" and added, "Kakao coexists with drivers but does not coexist with the designated driver company owners."

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