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Kakao changes its representative system... Growth + Win-win Catch two rabbits

After Nam Goong-hoon, CEO of Kakao, Hong Eun-taek, head of the Community Alignment Center (CAC), was appointed as the representative. By utilizing the capabilities of Center Director Hong, who has been leading the company's commerce business and in charge of environmental, social, and governance (ESG) management, he plans to catch two rabbits at once: 'building solidarity' and 'win-win with the industry'.

Kakao held a board meeting on the 14th and announced that they had newly appointed Hong Eun-taek, head of the center, as their respective representatives. It has been 4 months since Nam Goong-hoon's sole representative system began. Each CEO Hong Eun-taek graduated from the Department of Oriental History at Seoul National University and received a master's degree in journalism from the University of Missouri, USA. He worked as a reporter for the Dong-A Ilbo and Oh My News before moving to NHN in 2006.

He is known as the concubine of founder Kim Bum-soo, who is no less than the CEO of Namgung. He came from the same Seoul National University, and ate in a pot at NHN. He joined Kakao in 2012. CEO Hong served as vice president of content service, leading the Daum Kakao content team and social impact team.

He was promoted to Kakao Chief Business Officer in 2015 and Senior Vice President of Social Impact the following year. He also held the baton of Kakao Makers and Kakao Commerce. Since the beginning of this year, he has served as the head of the CAC and an internal director in charge of group-related matters. He also serves as the chairman of the Kakao Impact Foundation.

Unlike co-representatives, each representative has the responsibility for each business area and can make decisions independently. Due to the nature of Kakao, which has been subdivided into multiple affiliates, it is an easy structure to strengthen individual businesses.

If CEO Namgoong concentrates on advancing into the global market, CEO Hong is expected to strengthen the domestic business at the same time and create synergy throughout the company. In fact, while CEO Hong served as the vice president of content service, he introduced Kakao Page and Kakao Makers, and since 2018, as the CEO of Kakao Commerce, he has achieved a result of more than quadrupling the commerce transaction amount.

The change of each representative system is also read as a commitment to responsible management. Kakao is suffering from measles due to a series of issues such as the controversy over stock options 'eating' by former Kakao Pay CEO Ryu Young-joon, who was appointed as the head, and the recent rumors about the sale of Kakao Mobility.

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In the case of Kakao Mobility, discussions are ongoing to sell it to MBK Partners, a private equity fund. Multiple stakeholders, including the company's labor union, are accusing Kakao of choosing to avoid (sell), which has decided to fulfill its social responsibility by creating a win-win fund of 300 billion won.

At a press conference held in April, CEO Hong said, We have been working internally to create a win-win plan after listening to the harsh criticisms towards Kakao. It is not a simple donation, but Kakao will do what it can help.


It is interpreted as a strategy to quell the amplified social criticism with CEO Hong, who is responsible for the company's ESG (environmental, social, and governance) management and has come up with a win-win plan.

CEO Hong said, Based on the innovation and values that Kakao has created, we will find a way to contribute to society using our technology and services. It will play a role, he promised.

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