Kakao Begins Compensation for Melon, Webtoon, and Game Damages... Free Services Remain Difficult

Extension of Melon and Webtoon Subscription Periods
Compensation with In-Game Currency
KakaoT and Kickboard Compensation Planned
Free Services Difficult to Compensate for Damages

KakaoTalk error message. [Image source=Yonhap News]

[Asia Economy Reporter Seungjin Lee] As some of Kakao's major services affected by the fire at the SK C&C data center in Pangyo have been partially restored, compensation plans for users are being announced. However, compensation is expected to be provided only to paid service users.

Games, Webtoons, and Melon Begin Fire Damage Compensation

According to Kakao on the 17th, each game operated by Kakao Games compensated users for damages through notices issued the previous day. Popular games such as "Odin: Valhalla Rising" and "Uma Musume Pretty Derby" were inaccessible due to the data center fire preventing KakaoTalk login. Kakao Games converted the restricted access time and ongoing events at that time into in-game currency and provided it to users.

Kakao Webtoon and Melon also announced compensation measures. Kakao Webtoon stated in a notice, "The viewing period for rented and expired webtoon episodes during the service disruption will be extended by 72 hours." Expired caches during the disruption period will be reissued. Compensation will be provided according to specific damage cases.

Melon decided to extend the usage period of Melon passes by three days for all customers holding them. For subscription pass users, the payment date will be postponed by three days from the original date, and ticket users will have their expiration dates extended by three days. For Apple and Google in-app purchases where changing the payment date is difficult, as well as some affiliated passes, Melon Cash worth 1,500 KRW will be provided. Those whose usage expiration date was the 15th will also receive Melon Cash worth 1,500 KRW.

Taxi drivers who could not use the KakaoT taxi-hailing service and kickboard users who were unable to press the end-use button and were overcharged are also expected to receive compensation. Kakao Mobility plans to announce compensation measures for taxi drivers using paid services later. For kickboards, the policy is to adjust charges so that fees are only applied based on actual travel distance and time.

Notice of Compensation for Kakao Webtoon Service Disruption (Photo by Kakao Webtoon)

Dozens of Services Paralyzed... Compensation Only for Paid Services

Consumer demands for compensation are expected to continue increasing. Dozens of services were paralyzed due to the fire last weekend, and the types of damage cases are continuously expanding. These range from those inconvenienced by map applications freezing while on the move, users who missed gifticon expiration dates due to the service disruption, to those who suffered from restrictions on various deposits and withdrawals. Amid the flood of damage cases, compensation is expected to be provided only for paid services.

Kakao explains compensation and refunds for users in the event of paid service disruptions through Articles 12 and 17 of the "Kakao Paid Service Terms of Use." Article 12 specifies that compensation may be provided "in cases where normal service provision is hindered due to power outages, information and communication equipment failures or malfunctions, excessive usage, or communication interruptions."

However, there is no basis for compensation for free services. For KakaoTalk, which caused inconvenience to the majority of the population, direct compensation for service disruption seems difficult. However, companies advertising through KakaoTalk channels are paid service users and may be eligible for compensation. The same applies to Kakao Emoticon Plus and Daum Premium Mail.

Kakao, which has transitioned to an "Emergency Countermeasures Committee," plans to establish a reporting channel next week to discuss the scope of compensation and other matters. The Emergency Countermeasures Committee will be chaired by Hong Eun-taek, head of the Kakao Community Center, and will include executives from the headquarters and major subsidiaries. The committee will be composed of three subcommittees: the Cause Investigation Subcommittee, the Disaster Countermeasures Subcommittee, and the Compensation Measures Subcommittee.

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