Kakao Compliance Committee Composed of 7 Members... Holds Strong Powers Including Executive Veto Rights

Kakao's external body overseeing compliance and ethical management, the 'Compliance and Trust Committee' (hereinafter referred to as the Committee), announced the list of its first-term members on the 15th. To ensure objectivity, the committee is composed of experts from various fields including law, academia, and industry. Scheduled to officially launch within the year, the Committee will hold strong authority such as the power to demand the urgent suspension of key decision-making bodies within the group.

Chairperson Kim So-young Takes Charge of Committee Formation

The Committee consists of seven members, including Chairperson Kim So-young. Chairperson Kim was granted full authority over the committee’s composition and personally appointed experts active in various fields as members.

The members were selected as experts representing areas such as law and civil society, academia, media, industry, human rights, and management. They are individuals capable of actively voicing society’s concerns across diverse sectors. To ensure objectivity, external members were chosen who have no direct ties to Kakao but have shown interest in the broader venture IT industry.

Selected under these criteria are ▲Kim Yong-jin, Director of the Good Management Research Institute (co-founder of Freechal) ▲Ahn Soo-hyun, Professor at Hankuk University of Foreign Studies Law School (former President of the Korean Association of Banking Law) ▲Yoo Byung-joon, Professor at Seoul National University Business School (former President of the Korean Venture Startup Association) ▲Lee Young-joo, Chairperson of Gyeonggi Social Economy Center (former Deputy Director of the Judicial Research and Training Institute) ▲Lee Ji-woon, Head of Strategic Planning at Seoul Shinmun (former Editor-in-Chief) ▲Kim Jung-ho, Head of Management Support at Kakao, totaling six members.

Director Kim was selected as the representative of the industry sector. He is highly regarded for his deep understanding of the venture industry, having co-founded the internet venture company Freechal. He has led changes in organizational culture and work methods as the head of small and medium-sized enterprises such as Donghwa Natural Flooring, SL Mirror Tech, and DY. Currently, he works as an expert in organizational diagnosis and change management consulting for numerous companies and nonprofit organizations at the Good Management Research Institute.

In academia, Professors Ahn and Yoo were selected. Professor Ahn is a legal scholar recognized for his expertise in finance, corporate, and commercial law, having served as president of the Korean Association of Banking Law and the Korean Association of Economic Law. He has held various advisory and review roles at the Financial Services Commission and the Fair Trade Commission, demonstrating a strong understanding of financial industry practices. He is deemed well-suited to advise on compliance management for several financial companies within the Kakao community.

Professor Yoo is an expert in venture management and innovation investment, having served as president of the Korean Venture Startup Association. He also served as a professor at the Hong Kong University of Science and Technology, earning a reputation for his international perspective and strong trust in related fields. He will advise Kakao on regaining its early rapid innovation and youthful spirit of challenge to contribute more to society.

In the law and civil society sector, Chairperson Lee was selected. She majored in law at Seoul National University and its graduate school. She served as Chief Prosecutor of the Chuncheon District Prosecutors’ Office and Deputy Director of the Judicial Research and Training Institute, gaining attention as the 'second female chief prosecutor.' After retiring from the prosecution, she served as Director of the Human Rights Counseling Center at Seoul National University’s Human Rights Center. She handled various human rights issues and is recognized for her efforts to protect social minorities and the vulnerable. Chairperson Lee is expected to instill compliance spirit, human rights awareness, and the value of protecting the weak into Kakao as a legal expert with a prosecution background.

In the media sector, Lee Ji-woon, Head of Strategic Planning at Seoul Shinmun, was selected. Since joining Seoul Shinmun in 1995, he has worked in the social affairs, political, editorial, and editor-in-chief departments. As a senior figure in the media, the Committee expects him to critically assess Kakao’s current status with the sharp perspective unique to journalists and provide insights on directions for improvement.

The internal member is Kim Jung-ho, Head of Management Support at Kakao CA Council. Kim co-founded Naver and has extensive experience and insight in the venture and IT industries, including facilitating the merger of Naver and Hangame. Since 2012, he has established the social enterprise Bear Better to support the growth and employment of people with developmental disabilities. Recently, he has served as chairman of the Brian Impact Foundation, established by Kakao founder Kim Beom-su. Since September, he has been responsible for personnel, audit, and management support within the Kakao community as Head of Management Support. Going forward, he will serve as a bridge between Kakao and the Committee as the internal member.

Powerful Executive Role Including Demand for Suspension of Key Decision-Making

The Committee is an external organization independent from Kakao. It will serve as a powerful executive body capable of reforming compliance monitoring and internal control systems of affiliated companies. When compliance risk violations are identified, it holds effective and direct sanction powers such as ▲the right to demand internal investigations of affiliates ▲the right to conduct direct investigations by the Committee ▲the right to demand urgent suspension of key decision-making bodies.

To establish a legal basis, the Committee will sign agreements with affiliates and proceed with each company’s board resolutions before starting full-scale activities. Initially, it will closely examine various allegations raised by regulatory agencies and the media to prepare measures for preventing recurrence and protecting victims. Subsequently, it will fundamentally analyze the businesses of Kakao affiliates to review potential compliance and trust risks. The Committee plans to establish a compliance system to reduce risks and promote coexistence. It will set up a secretariat as a practical body to enforce policy intentions. Through the secretariat, it will communicate with legal, compliance, and audit organizations of affiliates. It also plans to continuously disclose its activities by opening a dedicated website and other channels.

Chairperson Kim said, "As Kakao faces social criticism due to various allegations, it is time for a responsible corporate rebirth. We plan to propose that ethical management, which realizes social values such as compliance and coexistence, operates as the fundamental management principle of the Kakao community."

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