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South Korean internet giant Kakao — in the middle of multiple investigations over antitrust and securities violations — has appointeda new CEO as it endeavor to turn the ship around . Shina Chung , who had been start the company ’s venture sleeve , is moving to the top part at the company .
Chung will officially step into the role next yr following the company ’s next board and shareowner ’ meeting in March , according to the ship’s company . She will become the first distaff chief operating officer at Kakao , and her engagement is intended to bespeak that the company is now in urgent reform style .
“ I will carry out active and responsible management ” to get together the prospect and standards of society , Chung state in its statement . “ I will not miss this chance for change because Kakao does not have much time . ”
Kakao laminitis Beom - soo Kim had hinted that Kakao would be getting new leadership on Monday , at an internal meeting , noting , “ Kakao has come to the stop where we must try fundamental change . We will establish leadership to lead a new Kakao . ”
Ongoing legal risks at Kakao
Kakao , which operates a wildly democratic super app of the same name , leads the land in services like messaging and Uber - like transportation on demand . Yet its position at the top has come at a price .
In October , Kakao primary investment officer ( CIO ) Jae - Hyun Bae wasarrestedand accuse of stock damage handling after KakaoacquiredK - dad agency SM Entertainment in March . If Kakao ’s CIO and other execs at Kakao Entertainment are bump to have violatedthe Capital Markets Actand face more penalties than a fine , Kakaocould be forced to sell at least 10 % of its stake in its on-line banking unit of measurement , Kakao Bank , by the country ’s financial governor . South Korea ’s current internet - only banking act has lay out down that non - financial companies should not have break the Capital Markets Act and financial legal philosophy , including fair swap laws or taxation natural law over the past five years , to restrain more than 10 % of vote rights in mobile - only banks like Kakao Bank .
Separately , just last calendar month , South Korean President Yoon Suk Yeol called for a review ofthe monopolistic practices of Kakao ’s hack - hailing building block , Kakao Mobility . The claim is that the party ismanipulating algorithms in its app to favor allot ride to Kakao - franchise cab drivers , who pledge to Kakao ’s pay rank , over non - Kakao taxi driver .
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Korea ’s antitrust governor had alreadyfined Kakao Mobility about $ 20.3 million for unfair service in February . Kakao Mobility , whichhas about 74 % of the drive - hailing mart in the country as of September , separately is essay to lower the temperature around this disceptation . Today it denote that it wouldlower commission fees from 5 % to 2.8 % for taxicab drivers and thatit plans to retool its membership outline next year .
Founded in2006 , Kakao — which meld with Daum Communications , a Korean net search engine , in 2014 — has now become South Korea ’s super app , offering the country ’s most democratic messaging app , KakaoTalk , taxi - hailing service Kakao Mobility , online banking weapons platform Kakao Bank , music stream app Melon and webtoon platforms Tapas Media and Radish and more . It has guide aggressive M&A deals in the retiring few class in South Korea and has spheric ambition , too . Kakao has more than 140 subsidiary company as of October .
Chung — who worked at Boston Consulting Group , eBay Asia and Naver prior to joining Kakao Ventures in 2014 to commit in local startups — will have her body of work cut down out for her .
This clause has been updated with information about Kakao ’s merger with Daum Communications in 2014 .
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