[Viewpoint] Was Kakao Truly an Innovation? ②

Was the Destination of Innovation Ruthless Profit?
What Can We Now Expect from Kakao?
Founder Kim Beom-su Must Answer Society's Questions

Public attention is focused on whether the crisis-stricken Kakao will be forced to sell its stake in Kakao Bank, whether the merger and acquisition of SM Entertainment will fall through, and the dark future of Kakao as a company, but the author's perspective is somewhat different.

We need to pay attention to the fact that the top management of the company could have agreed on a decision to commit illegal acts in order to secure something that became 'absolutely necessary' for business. And that too, crossing the final line that should never be crossed: stock price manipulation. The fact that they could carry out such a heinous crime shows that they had long since distanced themselves from any pride in innovation or the once-envied company they had built.

Although the full truth has not yet been revealed, now that the head of investments, known as the right-hand man of founder Kim Beom-su, has been arrested following a court ruling that "the objective facts seem to have been substantially clarified," we are faced with a situation where we must painfully strip away the laurel wreath of innovation that had been bestowed upon Kakao.

In fact, there were several warning signs. After acquiring Daum, the number one portal site, Kakao could not deny its limitations in capability, failing to grow into a rival that could challenge Naver, let alone Google. The potential for innovation that was expected to be demonstrated through Kakao Mobility ended as a failed experiment that only disrupted local businesses. When Kakao, holding the personal information of the entire nation and a powerful weapon that tightly connects it, started selling golf balls, one might reflect that their internal innovation energy had been depleted or perhaps that such innovation never existed from the start.

It is clear that many of Kakao's services have enhanced the convenience of our daily lives. However, the fundamental digital environment that made this possible was not created by Kakao. Kakao merely cleverly utilized business opportunities laid out by global companies armed with the highest level of innovation. After holding the information of tens of millions of our citizens, Kakao expanded from taxis to designated driver services, quick delivery, and parking businesses, with its sole interest being the destruction of existing operators. For Kakao, which has become a monopoly and obsessed with a predatory business model applying various fee structures, the current crisis may have been a predictable sequence.

Last year, when signs of Kakao becoming a new conglomerate and turning into a monster causing all sorts of noise in the market became clear, the author wrote in a column titled 'Was Kakao Mobility an Innovation?' that 'the large corporation Kakao must answer society’s questions.' Although the digital environment was not created by itself, does the entrepreneurial spirit to create even a second wave of innovation exist within Kakao? The answer has come back as a betrayal in the form of stock price manipulation.

If the worst-case scenario materializes where Kakao sells Daum and Kakao Bank and fails to acquire SM Entertainment, the company will essentially be left as an empty shell. We are bitterly witnessing the typical downfall of a platform giant that once boasted innovation and sometimes succeeded but has become mired in vulgar capitalism.

What should our society now expect from Kakao? Founder Kim, who appeared before the Financial Supervisory Service for investigation yesterday (the 23rd), must ultimately answer this. Obtaining his answer to this question is hundreds of times more important than the efforts Kim and Kakao will make to clear their charges.

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