Chairperson Kim So-young: "Kakao Has the Will to Change"... Junshinwi Fully Operational (Comprehensive)

Chairman Kim: "Kakao Focused Only on External Growth"
Establishing Scope and Authority in First Meeting
Kakao Affiliates Merger and Large Stock Transactions
Pre-Review by Subcommittee Required

On the 18th at 1 PM, Kim So-young, Chairperson of the Compliance and Trust Committee, is giving a speech at the EG Building in Gangnam-gu, Seoul.

The external independent body holding the key to Kakao's reform, the 'Compliance and Trust Committee' (hereinafter referred to as the Compliance Committee), has taken its first steps.

The Compliance Committee held its inaugural meeting at 1 p.m. on the 18th at the EG Building in Gangnam-gu, Seoul. The committee is a powerful executive body capable of overhauling Kakao Group's compliance monitoring and internal control systems.

Kim So-young, former Supreme Court Justice and chairperson of the committee, said in her opening remarks before the meeting, “Kakao started as a startup over ten years ago and became a leading innovator, receiving much love from the public.” She continued, “However, in recent years, the affectionate view toward Kakao has turned into concern and criticism. Numerous issues have surfaced both internally and externally, resulting in public disappointment.”

She pointed out, “The root cause lies with Kakao,” adding, “While emphasizing the innovation Kakao created, there was insufficient consideration for those who were harmed behind the scenes. The focus on external growth led to a failure to meet the standards and expectations demanded by society.”

Kim explained that her biggest concern upon taking the chairperson role was whether Kakao truly had the will to change. She said, “Before the first meeting, I met with Kim Beom-su, Chairperson of the Management Reform Committee, and shared concerns while listening to the voices of Kakao crew members. After hearing various opinions, I am convinced that although Kakao faces many pressing issues, its members have a strong will to change.”

On the 11th, Kakao, Kakao Games, Kakao Bank, Kakao Mobility, and Kakao Pay signed the ‘Kakao Community Co-growth and Compliance Management Agreement.’ Once the board resolution is completed, including Kakao Entertainment, a total of six companies will participate in the committee’s launch.

Regarding this, Chairperson Kim emphasized, “Since Kakao has opened the door to change, the Compliance Committee will ensure that Kakao becomes a company that fulfills its social responsibilities by sincerely practicing compliance management.”

She added, “Not only Kim Beom-su, Chairperson of the Management Reform Committee, but also the management and all Kakao employees must wholeheartedly strive to break away from past customs and establish the values of compliance and trust.”

Chairperson Kim also stated, “The Compliance Committee will establish a framework for compliance and internal control so that Kakao can make the right choices regardless of future circumstances,” rebutting criticisms that the committee’s efforts are merely ‘showmanship’ to escape immediate crises.

At the meeting, the Compliance Committee reviewed the compliance-related policies of the affiliated companies participating in the Kakao agreement and discussed the initial topics the committee should address. Kim Beom-su, founder of Kakao and head of the Future Initiative Center (Chairperson of the Management Reform Committee), Jeong Shin-ah, recently appointed CEO of Kakao and CEO of Kakao Ventures (in charge of the CA Council business), and Kim Jeong-ho, Kakao’s Chief of Management Support, did not attend.

Jung Shin-ah, the designated CEO of Kakao, spoke with reporters on the 18th at Kakao Pangyo Ajit in Seongnam-si, Gyeonggi-do, after the 8th emergency management meeting chaired by Kim Beom-su, the founder of Kakao and chairman of the management innovation committee, discussing Kakao's reform direction. (Photo by Cha Min-young)

Going forward, the Compliance Committee will work to root the principles of compliance and trust management within the affiliated companies by ▲establishing compliance programs and control frameworks ▲pre-reviewing and providing opinions on major management activities ▲supervising and recommending compliance programs ▲directly investigating risks of compliance violations ▲overseeing key decision-making organizations.

Major management activities subject to pre-review and opinion provision include affiliated companies’ ▲accounting and large-scale stock market transactions ▲organizational changes such as mergers, splits, acquisitions, and IPOs ▲internal transactions and other dealings. Additionally, if there is a risk of compliance violations related to user interest protection and industry coexistence, the committee may request data submission from the affiliated companies and provide opinions to the board regarding compliance violations by top executives and compliance officers.

Previously, Kakao established the Compliance Committee on the 3rd of last month and appointed former Justice Kim as its inaugural chairperson. Committee members include Chairperson Kim, Kim Yong-jin, head 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 Banking Law Association), Yoo Byung-joon, professor at Seoul National University Business School (former president of the Korean Venture Startup Association), Lee Young-joo, chairman of the 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), and Kim Jeong-ho, Kakao’s Chief of Management Support. The term of office is two years.

Meanwhile, on the same day, Jeong Shin-ah, the newly appointed CEO of Kakao, who attended the 8th Emergency Management Meeting held at Kakao Pangyo Ajit in Seongnam-si, Gyeonggi-do, said, “Starting from the reform task force, I have listened to the crew’s (employees’) stories and will consider how to move forward. The direction of reform has not yet been decided. Kakao does not have much time, so I will make sure not to miss the timing within the given timeframe.”

When asked if Kim Beom-su, Chairperson of the Management Reform Committee, gave any special instructions at the meeting, she replied, “He said let’s do well so that Kakao can further reform going forward.”

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