The former representative of Kakao Mobility, who is under investigation by the prosecution for allegations of call manipulation and inflating sales, has reportedly exercised a large stock option.
According to the information and communications (ICT) industry on the 23rd, Jeong Joo-hwan, former representative of Kakao Mobility, has reportedly exercised stock options on shares of Kakao Mobility that are expiring. This information is set to be included in the business report to be made public at the end of this month following the Kakao Mobility shareholder meeting scheduled for this week. The profit size expected from Jeong's stock option exercise is estimated to reach 9.5 billion won. However, it has been reported that he has not sold the shares, so no profit realization has been achieved.
A stock option refers to the right of employees of corporations to purchase company stock at a predetermined price within a certain period. Because the profit for employees increases as stock prices rise, it is commonly used in the information and communications (IT) industry as an incentive for employees who have contributed to performance.
Jeong is essentially the founder who designed Kakao Taxi as a new business for Kakao and built it to a leading position. He took on the role of representative after the spin-off of Kakao Mobility in 2017 and returned to Kakao in 2020.
Even if no profit realization has occurred immediately, given the ongoing investigations surrounding Kakao Mobility, it appears difficult for Jeong, who has established the overall framework of current management, to avoid critical scrutiny as he ultimately gains nearly 10 billion won through the stock option exercise.
Earlier, the Financial Investigation Division 2 of the Seoul Southern District Prosecutor's Office conducted search and seizure operations at three places, including offices in Bundang-gu, Seongnam City, and residences of employees, starting from the morning of the 20th, in connection with allegations of inflated sales at Kakao Mobility. The prosecution is investigating after receiving related documents from the Securities and Futures Commission regarding the overstatement of Kakao Mobility's operating revenue and operating costs.