'Muk-twi Controversy' Ryu Young-jun, Kakao CEO Nominee, Voluntarily Resigns (Comprehensive)
[Asia Economy Reporter Bu Aeri] Ryu Young-jun, the newly appointed co-CEO of Kakao, announced his intention to resign on the 10th.
Kakao had previously appointed Ryu, who was the CEO of Kakao Pay last November, as the new co-CEO. Ryu was scheduled to be officially appointed as CEO through the shareholders' meeting and board meeting in March.
Appointed in 2011 as a developer at Kakao, Ryu led the development of Voice Talk and was recognized for his contribution to expanding the tech-fin industry by successfully launching Kakao Pay, Korea's first simple payment service. With an internal developer appointed as Kakao's top executive, expectations were high both inside and outside the industry. However, controversy arose among employees over Ryu's large-scale sale of Kakao Pay shares along with other Kakao Pay executives, sparking accusations of a 'mukjji' (eat-and-run) scandal. Eight key executives, including Ryu, sold 90 billion KRW worth of Kakao Pay shares on December 10 last year, just about a month after Kakao Pay's listing. Ryu cashed out 46.9 billion KRW.
The Kakao labor union issued a statement on the 6th demanding Ryu's resignation. The union stated, "The collective sale by key executives, despite knowing it would negatively impact the market, is unprecedented since the opening of the securities market," adding, "The executives' moral responsibility, which led to the National Assembly discussing the 'Kakao Pay Mukjji Prevention Act,' will be hard to avoid."
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Criticism against Ryu was also strong among internal employees. Posts targeting Ryu continued to appear on anonymous workplace communities such as 'Blind.' A Kakao official said, "The Kakao board recently comprehensively considered the opinions submitted by employees through various channels and decided to accept this decision," adding, "We will make our best efforts to enhance shareholder value and restore trust among employees and executives going forward."
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