Kakao Publishes First 'Corporate Group Handbook'... "Integration Among Affiliates Underway"

[Asia Economy Reporter Ryu Tae-min] Kakao announced on the 16th that it has published a corporate group explanatory booklet for the first time.

In the '2022 First Half Corporate Group Explanatory Booklet' published on the same day, Kakao stated, "From April 6 to August 1, over approximately four months, the size of the corporate group shrank from 139 to 134."

Kakao categorized 112 subsidiaries (83.6%) among these into three main sectors: ▲ Global IP (Intellectual Property) - Cultural Ecosystem sector (76 companies) ▲ Digital Transformation for Everyday Innovation sector (23 companies) ▲ Future Growth Engine sector (13 companies).

The 'Global IP - Cultural Ecosystem' sector includes Kakao Entertainment, Kakao Games, and Seoul Arena. Major subsidiaries in the 'Digital Transformation for Everyday Innovation' sector include Kakao Bank, Kakao Pay, Kakao Mobility, and Kakao Style. The 'Future Growth Engine' sector includes Kakao Enterprise, Kakao Brain, Ground X, and Kakao Healthcare.

Additionally, Kakao classified subsidiaries based on their special roles within the Kakao community (4 companies) and ownership by the same person and related parties (10 companies). For the 'sector currently undergoing liquidation procedures or requiring liquidation in the future,' seven companies were named: Rock&All, Daum Global Holdings, Asan Kakao Medical Data, H3, Be Media Company, Yewon Books, and Sandwich Time.

Kakao emphasized, "We aim to contribute to revitalizing the startup ecosystem by investing so that startups aligned with Kakao's new strategic direction of 'Beyond Korea, Beyond Mobile' can grow and exit at appropriate valuations."

Furthermore, Kakao stated, "The Community Alignment Center (CAC) reviews and discusses through an investment council whether the investments of subsidiaries are made from the perspective of sustainable growth." It added, "By explaining management activities and the affiliate structure that reflects future strategies through the corporate group explanatory booklet, we intend to further enhance governance transparency," and announced plans to publish the booklet twice a year.

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