"Kakao Mobility Denies Algorithm Change Claims... Directly Refutes Fair Trade Commission Allegations"

[Asia Economy Reporter Seungjin Lee] Kakao Mobility has denied claims that it changed the Kakao Taxi dispatch algorithm ahead of the Fair Trade Commission's investigation into 'call steering,' stating that "this is not true."

Earlier, the Fair Trade Commission was reported to have secured evidence and testimonies indicating that Kakao Mobility internally changed the dispatch algorithm around mid-last year. This raised suspicions that Kakao Mobility altered the algorithm in preparation for the FTC investigation.

In response, Kakao Mobility stated, "Although an artificial intelligence (AI) dispatch system was introduced around March to April 2020, this had been in preparation for a long time since 2019 and was not implemented at a time close to the FTC investigation," adding, "Changing the dispatch logic significantly impacts the overall service and is not something that can be hurriedly developed and applied within a short period."

Furthermore, Kakao Mobility explained, "Key factors considered within the AI dispatch system, such as demand and supply status and acceptance rates, were also elements considered in the existing dispatch system," and emphasized, "The claim that the dispatch algorithm was changed in preparation for the investigation is incorrect."

The company also refuted claims that the algorithm was secretly changed. It stressed, "Many platform companies worldwide continuously improve their algorithms to enhance services, but it is rare to disclose algorithm changes or detailed information externally in advance," adding, "While disclosing algorithms could expose a company's core technological assets and raise concerns about abuse by platform participants, we unusually disclosed the detailed principles and structure of the taxi dispatch system last month to expand transparency in communication."

They added, "The Fair Trade Act does not stipulate an obligation to disclose the content or notify changes of algorithms," and argued, "It is difficult to accept the view that failure to notify algorithm changes constitutes a violation of the Fair Trade Act."

Kakao Mobility expressed regret, stating, "It seems unfortunate that the recent atmosphere views the platform industry not as a next-generation growth engine driven by creative activities but only as a subject of regulation, creating confrontation," and added, "While leading global platform companies are introducing new services and driving change, we hope standards for regulation will be established that do not harm corporate competitiveness or consumer benefits."

Meanwhile, at the end of last month, the Fair Trade Commission delivered a review report containing sanctions opinions to Kakao Mobility regarding suspicions of 'call steering.'

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