Kakao's 'Meoktwi Controversy' Aftermath... CEO Cannot Sell Shares for 2 Years After Listing

Photo of Kakao Pangyo Office

[Asia Economy Reporter Buaeri] Kakao, which had experienced internal strife due to the stock option exit controversy involving former Kakao co-CEO nominee Ryu Young-jun, has established stock sale regulations at the community level.

Kakao's Community Alignment Center announced on the 13th that it has prepared and will immediately implement stock sale regulations for executives across all affiliates.

The Community Alignment Center is an organization responsible for coordinating and supporting the strategic direction of all Kakao affiliates.

Going forward, executives of Kakao affiliate companies will not be allowed to sell stocks for one year after listing. The sale restriction applies without exception to stocks received through exercising stock options. The application period is from the date of submission of the securities registration statement until one year after listing.

For the Chief Executive Officer (CEO), the sale restriction is even stricter, extended to two years instead of one. Joint stock sales by executives are also prohibited.

Kakao has established a pre-risk inspection process for stock sales by executives of listed companies. From now on, when an executive sells stocks, the quantity and period of the sale must be shared one month in advance with the Community Alignment Center and the IR team of the affiliated company. The stock sale regulations apply even if the executive moves to another affiliate or retires from the previous company.

A Kakao official said, "We are considering Kakao's social role and plan to contemplate and apply various measures to strengthen the ethical awareness of management and employees and to prevent risks."

Kakao also plans to review the community's listing-related matters to ensure growth that fulfills social responsibility.

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