Naver and Kakao Racing to Restructure Leadership for Global Expansion (Comprehensive)

Kakao's Kim Beom-su Resigns as Chairman to Focus on Global Expansion
Naver Appoints 1980s-born Global M&A Expert as New Head

[Asia Economy Reporter Kang Nahum] Naver and Kakao are accelerating leadership restructuring to target global expansion. Kakao’s Chairman of the Board, Kim Beom-su, stepped down from his chairmanship to effectively return to frontline management, while Naver appointed global M&A expert Choi Soo-yeon as its new CEO, broadening its reach into overseas markets.

According to Kakao on the 14th, Chairman Kim will step down from his chairmanship at the upcoming shareholders' meeting at the end of this month and focus on tasks related to the global expansion of the Kakao community. He will retain his role as head of the Future Initiative Center and continue to present a vision for the future growth of the entire Kakao community as its founder.

Kim’s role transition is part of Kakao’s global strategy restructuring. Kakao previously set the core keywords for the next decade as ‘Beyond Korea’ and ‘Beyond Mobile.’

Regarding these keywords, Kim explained, "'Beyond Korea' is Kakao’s own mission and a strong demand from Korean society to pioneer new territories beyond Korea as a starting point. ‘Beyond Mobile’ refers to the business directions emerging after the past decade of connectivity, such as metaverse and Web 3.0."

He added, "NK (Namgoong Hoon, Kakao’s designated CEO) will lead efforts to pioneer new areas like the metaverse for Beyond Mobile, while I will focus on tasks related to Beyond Korea."

This leadership restructuring is interpreted as Kim’s determination to overcome the current crisis facing the company. Last year, Kakao faced criticism for reckless business expansion, dubbed ‘octopus expansion,’ and was heavily criticized by regulators, politicians, and public opinion. Kim was summoned three times to the National Assembly’s audit, where lawmakers intensely questioned him about allegations of infringing on small businesses and tax evasion. Recently, controversies such as stock option ‘exit scams’ by key affiliate executives have lowered both the stock price and employee morale.

Industry insiders have widely analyzed that Kakao’s crisis stems from the absence of a control tower to provide clear company direction. The global business plans and this leadership restructuring are seen as Kim’s will to regain ‘past glory.’

Kakao’s major affiliates are also strengthening their overseas market strategies in line with the ‘Beyond Korea’ direction. Kakao Entertainment, currently targeting North America, ASEAN, Greater China, India, and Europe through various platforms such as Kakao Webtoon, Tapas, Radish, and Usia World, plans to triple its global transaction volume by 2024.

Kakao Games successfully completed the trial service of the mobile game Odin in Taiwan, which was a major success domestically, and is preparing for its official release this year while also preparing global services for various new games.

Naver has also set the stage for a leap as a global top-tier internet company by welcoming a new CEO born in the 1980s. On the same day, Naver appointed Choi, head of the Global Business Support Division, as CEO and inside director through the regular shareholders' meeting and board of directors at its Green Factory headquarters in Seongnam, Gyeonggi Province. The term is three years.

This year, Naver is betting on business expansion in the U.S., Japan, Europe, and Southeast Asia. Accordingly, the new management faces the task of reorganizing the business portfolio and successfully incubating new businesses by creating synergy with domestic and international partners.

New CEO Choi plans to pursue a more aggressive global offensive than the previous CEO Han Seong-sook’s administration. He aims to establish a system where major businesses fulfill social responsibilities and legal obligations globally and expand global business through synergy among businesses. He also intends to proactively invest in technology and talent to discover new businesses that will grow globally.

Choi said on the day, "Going forward, Naver will become a new business incubator continuously producing global brands surpassing Line, Webtoon, and Zepeto, which were created by previous management and members. We will establish a system to accelerate the growth speed of global businesses across various sectors."

Kim Nam-seon, the newly appointed Chief Financial Officer (CFO) and Choi’s management partner, is also highly anticipated. Before joining Naver, he led major domestic and international M&A projects and investment and financial advisory work at global investment firms Lazard, Morgan Stanley, and Macquarie. Since joining Naver, he has led big deals such as the acquisition of Wattpad and equity swaps with Emart and Shinsegae.

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