Kakao decided to maintain some revitalization teams within the group and focus on implementing follow-up tasks after the resignation of founder Kim Beom-soo. The activities of the existing management revitalization committee will end, but a separate dedicated organization will be operated to continue the revitalization initiative.
According to industry sources on the 16th, Kakao plans to establish a separate organization to check the status of revitalization task implementation and provide necessary support instead of disbanding the management revitalization committee within the Joint Advisory Body. There is a plan to maintain core functions while slightly reducing the existing organization.
Earlier, Kakao announced on the 13th that founder Kim Beom-soo would resign from his position as co-chairperson of the Joint Advisory Body, the group’s highest decision-making body, due to health issues. Consequently, the activities of the management revitalization committee, which had been operating temporarily since November 2023, were also concluded. Kim is undergoing hospitalization and treatment after receiving an early diagnosis of bladder cancer and has repeatedly been absent from court proceedings related to allegations of stock price manipulation involving SM Entertainment.
Kakao launched the management revitalization committee in 2023, with Kim serving as the chairperson, leading revitalization efforts to overcome the crisis. In particular, the committee established an external supervisory body called the "Compliance and Trust Committee" and carried out reform tasks such as governance restructuring and personnel revitalization.
Although the management revitalization committee is disbanded, the Compliance and Trust Committee will continue to operate as an independent supervisory body. Kakao is also continuing to streamline non-core businesses, reducing the number of affiliates from 147 in May 2023 to 116 as of February this year, approximately a 20% decrease.