[Reporter’s Notebook] Kim Beom-su Needs the Courage to Resolve What He Started Himself

Kim Beom-su, former chairman of Kakao, is appearing at the Financial Supervisory Service on the 23rd to be investigated regarding allegations of stock price manipulation related to the acquisition of SM Entertainment. Photo by Kang Jin-hyung aymsdream@

At around 6 a.m. on the 4th, about ten members of the Kakao labor union gathered in front of Kakao Ajit in Seongnam-si, Gyeonggi-do. Due to the subzero weather, the union members’ hands, reddened by the cold, held signs that read “Management Reform.” They set out early in the morning to meet Kim Beom-su, head of the Future Initiative Center and founder of Kakao, who has been holding emergency management meetings every Monday for over a month. However, despite waiting for more than two hours, Kim Beom-su did not appear before the union members.

Kakao is facing a crisis both internally and externally. Following allegations of market manipulation during the acquisition process of SM Entertainment, a new controversy has erupted over the management’s lax governance. The issue was triggered by a social media (SNS) expos? from Kim Jeong-ho, Kakao’s Chief of Management Support, but the situation had been anticipated years ago. There were numerous warning signs, including the 2021 “Kakao Pay stock option embezzlement scandal” involving Ryu Young-jun, then CEO-designate of Kakao (and CEO of Kakao Pay at the time), as well as a recent case of corporate card misuse by a finance officer.

At the center of the controversy has always been a close aide of Kim Beom-su. His management philosophy is “autonomous management.” He placed trusted aides in key positions and entrusted the company to their “autonomous management.” However, “autonomy” soon turned into “laxity.” Ultimately, all these controversies were brought about by Kim Beom-su himself. Nevertheless, whenever controversies arise, Kim Beom-su distances himself by claiming he no longer involves himself in management.

Kim Jeong-ho’s external disclosure of internal management conditions is also directed at Kim Beom-su, who has failed to excise the problem himself. He revealed that a previous investigator before him was unable to conduct a proper investigation due to the “Kakao cartel.” Kim Jeong-ho recently became embroiled in a verbal abuse controversy during an investigation into executive misconduct, which he explained was a strategy by the “Kakao cartel” to halt the investigation.

On the 4th, ahead of the emergency management meeting, Kim Jeong-ho, who had been continuing his expos?s via SNS, told reporters that he would stop further disclosures. He urged Kim Beom-su to take responsibility and resolve the issue.

Kim Beom-su must not miss this opportunity. The union has been raising concerns about lax management for years and demanding a meeting with Kim Beom-su. Now is the time to meet. Recently, Kim Beom-su established an external oversight body called the “Compliance and Trust Committee” under the pretext of management reform. However, since it is composed solely of external personnel, it is difficult to hear the voices from within Kakao. The emergency management meetings chaired by him are made up of close aides. At this rate, the critical moment to excise the problem may be missed.

Despite the subzero weather, the union plans to continue protests every week demanding a meeting with Kim Beom-su. This winter must not pass without resolution.

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