Kakao Strengthens 'Control Tower' Overseeing Subsidiaries

[Asia Economy Reporter Kang Nahum] Kakao, which recently faced turmoil due to controversies over 'eat-and-run' by affiliate executives, is establishing a control tower to oversee its affiliates.

On the 12th, Kakao announced that the Chigeun Community Consensus Center has been renamed the Corporate Alignment Center. The center head has been changed from the former CEO of Crust, Song Jiho, to Kakao CEO Yeo Minsu.

This center was established in 2017 to promote synergy and facilitate collaboration between the headquarters and its affiliates. However, since last year, various controversies such as the sprawling expansion of affiliates have arisen, leading to criticism that there is no organization to manage the overall community system. The recent change in the center's name and leadership is interpreted as a measure to redefine its role as the community control tower.

Kakao plans to drive future management with these two pillars: the Corporate Alignment Center and the Future Initiative Center. The Corporate Alignment Center is responsible for systematic community strategy, while the Future Initiative Center designs and promotes strategies to create new growth engines. Currently, the Future Initiative Center is co-headed by Kakao Chairman of the Board Kim Beom-su and former Kakao Games CEO Namgung Hoon.

A Kakao official stated, “The Corporate Alignment Center is an organization that contemplates Kakao’s sustainable growth and systematically supports the community,” adding, “The detailed composition and roles of the center have not yet been finalized.”

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