Kakao Mobility's 'Sale Rumors': CEO Ryu Geung-seon Says "I Would Also Oppose If Conditions Are Unacceptable"

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[Asia Economy Reporter Kang Nahum] As Kakao Mobility was engulfed in rumors of a sale, causing unrest within the company, the management finally spoke out. CEO Ryu Geung-seon reassured employees that if the sale were to proceed under unfavorable conditions, they would actively oppose it.

According to internal sources at Kakao Mobility on the 17th, CEO Ryu stated at the company-wide meeting "All Hands," held both online and offline, "It is true that there were discussions about selling the company," adding, "It seems these were initial talks, and nothing has been decided."

When employees asked about the reasons behind the sale discussions, CEO Ryu explained, "Our management is not part of the parent company, so we are not the subjects but the objects of the discussions," and said, "It is difficult to know the exact reasons for the sale talks."

CEO Ryu said, "If the sale proceeds under conditions unacceptable to us regarding employee welfare and job security, I, as a shareholder, will also step forward to oppose it."

The management's proactive communication comes as employee resistance to the sale issue has intensified. In fact, the number of Kakao Mobility union members, which was only 35, has increased tenfold over the past three days to over 350. With a total of 700 employees, more than half have joined the union. Kakao Mobility is the first affiliate within the Kakao community to surpass a 50% union membership rate.

Employees are particularly concerned that the potential buyer is a private equity fund. An employee at Kakao Mobility expressed, "If a private equity fund becomes the owner of the company, it is likely to focus on short-term profitability improvements rather than long-term growth," adding, "Especially MBK Partners, which has been mentioned as a potential M&A candidate, is notorious in the industry for being relentless in recovering profits."

Previously, the parent company Kakao had been in talks with MBK Partners, the largest private equity fund in Korea, regarding the sale of Kakao Mobility. MBK Partners reportedly expressed interest in acquiring about 40% of Kakao Mobility shares earlier this year, but negotiations were temporarily halted due to disagreements over pricing.

Looking at Kakao Mobility's shareholding structure, Kakao holds 53.4% as the largest shareholder, while U.S.-based private equity funds TPG and Carlyle hold 27.0% and 5.8%, respectively. When Kakao Mobility attracted investment from Carlyle, the company was valued at 8.5 trillion won.

Kakao stated regarding the sale rumors of Kakao Mobility, "We are reviewing various options for the sustainable growth of mobility, but no decision has been made (regarding a sale)."

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