Kakao will specify in its corporate governance charter the provision for "prior review of shareholder interest infringement and measures to protect shareholders in the event of an IPO." Kakao's Compliance and Trust Committee announced on the 15th that it has completed the implementation of all improvement plans in line with its three major agenda recommendations: responsible management, ethical leadership, and restoring social trust.
This measure aims to prevent the decline in value for the parent company's shareholders due to the subsidiary's listing. This is a follow-up action after the incident of shareholder value erosion due to the massive equity sale by executives following the listing of Kakao Pay in 2021. The Compliance and Trust Committee plans to strengthen communication with the parent company's shareholders during the subsidiary's IPO and establish shareholder protection measures tailored to the characteristics of the subsidiary.
Last year, Kakao announced and began implementing improvement plans in accordance with the recommendations of the Compliance and Trust Committee. In the first agenda item of responsible management, it strengthened the role of the control tower of the CA consultative body and reinforced the review process for large-scale investments. In the agenda of ethical leadership, it established an executive code of ethics and reflected it in contracts.
Kim So-young, the chairperson of the Compliance and Trust Committee, noted, "We will continue to strive to restore social trust for Kakao."