Im Ji-hoon, former CEO of Kakao, filed a lawsuit demanding the payment of a performance bonus amounting to 600 billion won to Kakao Ventures (formerly known as KQube Ventures), and under the court's recommendation for reconciliation, both parties reached a settlement.
According to the legal community on the 12th, the Seoul High Court's Civil Division 18-2 (Director General Park Sun-jun, Jin Hyun-min, and Wang Jeong-ok) issued a recommendation for reconciliation on the 13th of last month in a contract lawsuit where Im Ji-hoon claimed, 'Pay the performance bonus of 589 billion won' against Kakao Ventures.
The decision became final after the parties did not raise any objections within two weeks of the decision. A recommendation for reconciliation has the same effect as a court settlement if there are no objections during the period. Court settlement refers to a litigation agreement where both parties make concessions to resolve disputes.
Previously, Im Ji-hoon filed a lawsuit in March 2022, claiming that Kakao Ventures' first fund, KQube No. 1 Investment Association Fund, was liquidated in October 2021 but did not pay the performance bonus as promised in advance.
Kakao Ventures was established in March 2012 under the name 'KQube Ventures' with 100% equity held by former Chairman Kim Beom-soo. After assuming the role of the first representative of the company, Im Ji-hoon signed a performance compensation contract stating that he would receive 70% of the performance bonus in early 2015. Subsequently, in March 2015, KQube Ventures was incorporated into the Kakao group, and in August, Im Ji-hoon took office as the CEO of Kakao, stepping down from his position as the CEO of Kakao Ventures.
At the end of the same year, Im Ji-hoon modified the performance compensation contract to stipulate that 'the compensation rate would be lowered to 44%, but the full performance bonus would be paid regardless of the length of service' and re-signed it. Based on this contract, Im Ji-hoon was expected to receive a performance bonus in the range of 600 to 800 billion won, but Kakao Ventures has withheld payment, citing that there was no prior resolution from the shareholders' meeting and board of directors regarding the payment commitment made in early 2015.
The first trial took place in November 2023. At that time, the court stated, 'In order to definitively pay 44% of the performance bonus regardless of the period of service, a separate resolution from the shareholders' meeting approving this is necessary, and it cannot be considered that there was a resolution related to the changed contract,' and ruled in favor of the defendant.