Kakao Mobility to Pursue Reappointment of CEO Ryu Geung-seon Amid 'Accounting Fraud' Controversy

Ryu Geung-seon, CEO of Kakao Mobility, is answering questions from the press before a meeting with four taxi organizations at the National Taxi Federation Hall in Yeoksam-dong, Gangnam-gu, Seoul, in November last year.
[Photo by Yonhap News]

Kakao Mobility has been confirmed to have submitted a proposal for the reappointment of CEO Ryu Geung-seon, who is under controversy for inflating sales, as an inside director at the shareholders' meeting.

According to related industry sources on the 12th, Kakao Mobility has put forward the reappointment of CEO Ryu Geung-seon as an inside director as an agenda item for the shareholders' meeting scheduled for the 27th. The notice of convocation for the regular shareholders' meeting is expected to be sent to shareholders this week.

If the agenda to reappoint CEO Ryu Geung-seon as an inside director is resolved, it is likely that he will also retain his position as CEO. Once CEO Ryu Geung-seon is reappointed as an inside director, the board of directors will decide whether he will continue as CEO. Since Kakao holds more than 57% of Kakao Mobility's shares, the confirmation of the agenda at the shareholders' meeting has strengthened claims that the reappointment is virtually guaranteed.

However, concerns have been raised as submitting the reappointment of CEO Ryu Geung-seon as an agenda item may be seen as ignoring the Financial Supervisory Service's recommendation. At the end of last month, the Financial Supervisory Service notified sanctions against Kakao Mobility for illegally inflating sales. They are pushing for a fine of 9 billion KRW and a prosecution referral, and recommended the dismissal of CEO Ryu Geung-seon. The level of disciplinary action will be finally confirmed through resolutions by the Audit Committee under the Financial Services Commission and the Securities and Futures Commission.

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