[2022 National Audit] Ryu Geung-seon "Compensation for Damages to Be Comprehensively Reviewed Including Free Users"

Ryu Geung-seon, CEO of Kakao Mobility, appeared as a witness at the comprehensive audit of the Ministry of Land, Infrastructure and Transport held by the Land, Infrastructure and Transport Committee at the National Assembly in Yeouido, Seoul, on the 21st, responding to questions from lawmakers. (Photo by Internet Uisajunggae System)

[Asia Economy Reporter Seungjin Lee] Ryu Geung-seon, CEO of Kakao Mobility, stated that they will consider compensation not only for taxi and designated driver drivers affected by the 'Kakao outage' incident but also for free users.

"We will comprehensively review the compensation by collecting cases over two weeks"

At the National Assembly Land, Infrastructure and Transport Committee’s audit held on the 21st in Yeouido, CEO Ryu, who attended as a witness, bowed his head and said, "I sincerely apologize for the great inconvenience and concern caused to the public and the members of the National Assembly due to this incident," before the lawmakers’ questions.

Kim Byung-wook, a member of the Democratic Party of Korea, pointed out, "Kakao Mobility announced compensation measures for taxi and designated driver drivers, deciding to pay 7,750 KRW and 4,260 KRW respectively," adding, "Many drivers are outraged, and there is an evaluation that this is like putting a band-aid on a wound."

In response, CEO Ryu explained, "We proactively proceeded with parts that can be systemically verified," and said, "We took preemptive measures such as fully refunding users for overcharges that occurred during the relevant time. We are meeting with driver organizations, designated driver unions, taxi organizations, and the Ministry of Land, Infrastructure and Transport to listen to cases."

Regarding the specific schedule for announcing compensation, CEO Ryu replied to Kim Byung-wook’s inquiry, "While it is important to act quickly, it is more important to accurately identify the actual damage and do our best to provide appropriate compensation," adding, "We are receiving damage reports for two weeks, and after that period, we will try to finalize the scale of damage and compensation measures as soon as possible."

When Kim asked, "Shouldn’t free call services be provided 3 to 5 times to citizens?" CEO Ryu responded, "We will keep that in mind and review it for possible reflection."

On this day, CEO Ryu was repeatedly criticized for not being able to establish concrete compensation plans.

Sim Sang-jung, a member of the Justice Party, pointed out that "Kakao T Blue, Venti, and Black franchise taxis have already identified losses, so should drivers have to report individually?" and emphasized that Kakao Mobility should take proactive compensation measures.

In response, CEO Ryu said, "Kakao T Blue was able to operate roaming services, but Venti and Black could not operate 100%," and added, "We empathize with the pain and will actively compensate for the damages."

Repeated criticism over insufficient terms and conditions related to compensation

Last weekend, the Kakao Mobility service went down due to a data center fire, and the absence of compensation-related clauses in the service terms and conditions also came under scrutiny.

Jang Cheol-min, a member of the Democratic Party of Korea, asked, "I looked at the terms and conditions, but there is no content on compensation for service interruptions. Is there a compensation manual within the company?" CEO Ryu bowed his head and said, "As you mentioned, there seem to be insufficient parts."

Han Jun-ho, also from the Democratic Party of Korea, asked whether there are plans to compensate for damages beyond the scope of the terms and conditions. CEO Ryu replied, "Since there are many shortcomings in the terms and conditions, we will negotiate openly without limiting to the terms and conditions," adding, "We will identify various cases."

There were also continued criticisms regarding 'call monopolization' and monopoly issues concerning franchise taxis.

Sim said regarding Kakao Mobility’s recent disclosure of the dispatch algorithm to resolve 'call monopolization' suspicions, "Non-franchise drivers are allowed to choose destinations, but franchise drivers are not, and including 'dispatch acceptance rate' in the algorithm means that 'call monopolization' operates automatically."

CEO Ryu responded, "The dispatch acceptance rate is for the convenience of customers' transportation."

Meanwhile, CEO Ryu voluntarily appeared as a witness at the national audit on this day. The National Assembly requires witness summons to be delivered at least seven days in advance. Since the deadline was not met, CEO Ryu was not obligated to appear.

Nevertheless, it is interpreted that CEO Ryu decided to voluntarily attend the audit because he felt the need to actively explain the impact of damages in the mobility sector, one of the major services, following the Kakao outage incident.

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