[Reporter’s Notebook] Kakao Returns to the Past with Their Own Standards for Reform

Kakao Pangyo Agit, Seongnam, Gyeonggi. Photo by Jinhyung Kang aymsdream@

Kakao has appointed a former executive involved in the so-called ‘meoktwi’ controversy as its new Chief Technology Officer (CTO). This individual exercised stock options shortly after the KakaoBank IPO, earning tens of billions of won in profits. The person who brought back the main figure behind the meoktwi controversy was Jeong Sin-ah, the appointed CEO of Kakao.

When asked why someone clearly likely to stir controversy was appointed to a key executive position, no straightforward answer was given. An insider familiar with the internal situation simply said, "There must be some reasons." They explained that the stock was sold for personal reasons, and since the stock price later fell, it ultimately became a meoktwi case, but it should not be viewed entirely negatively. It sounded like they were saying that if the person is capable, they are willing to accept moral flaws or social criticism.

This recalls the situation three years ago, which marked the beginning of Kakao’s crisis. Similar to the new CTO, executives including former KakaoPay CEO Ryu Young-jun sold shares right after the IPO, realizing profits of around 90 billion won, sparking the meoktwi controversy. At that time, Ryu was already appointed as co-CEO of Kakao. The company portrayed him as a "proven CEO who would fulfill social responsibilities," but this verification ultimately failed. The bomb he left behind started with a decline in corporate trust and led to Kakao’s current comprehensive crisis.

Kakao’s crisis began from such ‘reasons.’ It overlooked various circumstances under the banner of autonomous management and meritocracy. Although there were some standards, the management verification failed, resulting in the accumulation of numerous problems. Despite declaring a reform in the face of an all-out crisis, Kakao reverted to applying their own standards as before. The fact that the next CEO, who heads Kakao’s reform task force (TF), essentially declared that such flaws are acceptable going forward means no progress has been made.

Kakao has been working on reform since the end of last year. The reclusive founder Kim Beom-su took the lead in the reform efforts and even expressed determination to change the company’s name. Jeong Sin-ah, the appointed CEO, is playing a key role in this process. If Kakao remains trapped in their own standards, the meaning of reform must be reconsidered. At the very least, stricter standards than the public’s expectations must be applied to gain acceptance. Proper reform begins there.

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