Kim Beom-su Appears at the National Assembly Audit for 2 Consecutive Years, Repeating the 'Platform Audit' This Year

Kim Beom-su Speaks Out on 'Kakao Outage'... Interest in Compensation Measures
Lee Hae-jin and Kim Beom-su Side by Side for 2 Consecutive Years... Platform Audit Expected to Recur

[Image source=Yonhap News]

[Asia Economy Reporter Yuri Choi] Kim Beom-su, head of Kakao Future Initiative Center, who appeared three times last year as a witness at the National Assembly audit over controversies regarding infringement on local businesses, will attend this year's audit as well. This will be the first time Kim speaks about the Kakao outage caused by the SK C&C Pangyo data center fire, drawing significant attention. The key points to watch are what stance he will take on compensation measures, recurrence prevention plans, and platform monopoly issues.

According to the IT industry and political circles on the 24th, Kim, along with Hong Eun-taek, CEO of Kakao, Park Seong-ha, CEO of SK C&C, Lee Hae-jin, Naver Global Investment Officer (GIO), and Choi Soo-yeon, CEO of Naver, will appear as witnesses at the National Assembly Science, Technology, Information and Broadcasting and Communications Committee's comprehensive audit. Lawmakers from both ruling and opposition parties summoned the founders and CEOs of these companies as witnesses after Kakao and Naver services experienced outages due to the data center fire.

Since most Kakao services, including the national messenger KakaoTalk, were paralyzed, focused questioning of Kim is expected. Although Kim stepped down as chairman of the board in March, he remains a key figure at Kakao as the largest shareholder and head of the Future Initiative Center, which contemplates the company's future.

First, there is interest in whether Kim will present concrete user compensation plans and recurrence prevention measures. Currently, Kakao has set up a dedicated damage reception channel to collect reports of damages. While Kakao has indicated the possibility of compensation for free services, actual compensation is expected to be difficult, so attention is on what position Kim will take. Under current laws and terms of service, compensation for free services depends on moral responsibility.

The platform monopoly issue is also expected to be raised. In political circles, the Kakao outage incident has created an atmosphere to curb platform companies' sprawling business expansions and monopolistic practices. Some criticize that Kakao prioritized profitability in its business expansion process, neglecting data center diversification, and such criticism is expected to continue.

Kim bowed his head last year at the audit over controversies regarding infringement on local businesses. As Kakao's business expansion was spotlighted, he publicly promised to withdraw from controversial businesses and reorganize around innovative projects. At that time, Kim said, "We will never enter businesses that infringe on local businesses."

Since then, Kakao has withdrawn from some businesses such as flower and salad delivery and announced plans to reduce affiliates. Kakao Mobility, which was controversial for high commission rates, was also considered for sale. On the other hand, Kakao strengthened ethical management and established the Community Alignment Center (CAC), which acts as a control tower for affiliates. Since detailed implementation plans have been made following Kim's audit remarks, there is interest in what direction will be presented this time.

Kim's possible return to management is also expected to be mentioned. With former CEO Namgung Hoon stepping down taking responsibility for the outage, Kakao faces a leadership vacuum to lead crisis management and restore corporate trust. Regarding this, CEO Hong stated, "We will be able to hear Kim's position at the comprehensive audit."

There is also attention on whether a blame game between Kakao and SK C&C will unfold over this incident. Currently, the two sides have conflicting positions regarding the timing of fire detection, so it is certain that committee members will continue to question this. Additionally, GIO Lee and CEO Choi will also be questioned about the fire. GIO Lee, appearing at the audit for the second consecutive year, is unlikely to avoid scrutiny over platform monopoly issues.

Meanwhile, SK Chairman Chey Tae-won was listed as a witness for the audit but submitted a notice of absence on the 21st, citing attendance at a forum aimed at overcoming the global supply chain crisis scheduled for the same day.

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