KaKao

- Committee includes 7 members led by Chairperson Kim So-young, spanning law, academia, media, and industry.

- Chairperson Kim proposes prioritizing compliance and ethical management over revenue as a core business principle.

 

[November 15, 2023] The 'Compliance and Trust Committee,' an external entity tasked with overseeing the legal and ethical operations of Kakao's affiliates, has revealed its first roster of members. Additionally, the Committee outlined its operational principles and upcoming schedule.

 

❏ Committee formed with 7 experts, including Chairperson Kim So-young, representing diverse societal voices from  law, academia, and industry to ensure objectivity.

 

Chaired by Kim So-Young, the seven-member committee comprises experts representing diverse sectors. Kim, vested with full authority to form the committee, handpicked members from various professional backgrounds.

 

The committee members, chosen to boost credibility, are experts in fields like law and civil society, academia, journalism, industry, human rights, and management. Their selection prioritizes diversity and the ability to actively relay societal viewpoints. External members, selected for their impartiality, have no direct connections with Kakao but have shown interest in the broader venture IT sector.

 

The committee features individuals such as ▲Kim Yong-Jin, Director of the Good Management Research Institute and co-founder of Freechal; ▲Ahn Soo-Hyun, Professor at Hankuk University of Foreign Studies Law School and former President of the Korean Bank Law Society; ▲Yoo Byung-Joon, Professor at Seoul National University Business School and former President of the Korean Venture Business Association; ▲Lee Young-Joo, Chairman of the Gyeonggi Social Economy Center and former Vice President of the Judicial Research and Training Institute; ▲Lee Ji-Woon, former Editor-in-Chief and Strategic Planning Director at Seoul Newspaper; and ▲Kim Jung-Ho, Kakao’s General Manager of Business Support, among others (listed in Korean alphabetical order, excluding internal members).

 

Representing the industry, Kim Yong-Jin, head of the Good Management Research Institute and co-founder of the Internet venture company Freechal, possesses deep insights into the venture industry. His leadership roles in companies such as Donghwa Nature Flooring, SL Mirrortech, and DY, where he drove changes in organizational culture and work styles, add to his credentials. Currently, he works as an organizational diagnosis and change management consulting expert, advising various companies and non-profit organizations. His extensive experience is anticipated to provide valuable guidance for Kakao’s future direction.

 

From academia, the Committee selected Ahn Soo-Hyun, a Professor at Hankuk University of Foreign Studies Law School, and Yoo Byung-Joon, a Professor at Seoul National University Business School. Ahn Soo-Hyun, a distinguished legal scholar recognized for her expertise in finance, corporate, and commercial law, has served as an advisor and committee member for the Financial Services Commission and the Fair Trade Commission, demonstrating a profound understanding of financial industry practices. She is deemed well-suited to advise on compliance management for Kakao’s various financial companies.

 

Yoo Byung-Joon, a member of the Committee, is recognized as a leading figure in venture management and innovation investment. A renowned information systems scholar, he has served as president of the Korean Venture Business Association and a professor at the Hong Kong University of Science and Technology. His international experience and credibility in the field make him an ideal advisor to guide Kakao in revitalizing its innovative and youthful ethos to contribute more to society.

 

Lee Young-Joo, selected from the legal and civil society sector, is the Chairman of the Gyeonggi Social Economy Center. With a legal background from Seoul National University, she has held significant roles, including Chief Prosecutor at the Chuncheon District Prosecutor's Office and Vice President of the Judicial Research and Training Institute. Known for her pioneering work as the second female chief prosecutor, she later headed the Human Rights Counseling Center at Seoul National University post-retirement from the prosecution, tirelessly advocating for the rights of societal minorities and the underprivileged. Her expertise is expected to reinforce Kakao's commitment to legal compliance and human rights.

 

Representing the media sector, Lee Ji-Woon, former Strategic Planning Director at Seoul Shinmun, has been selected. Joining the paper in 1995, he has covered social and political beats, served as an editorial writer, and held the position of editor-in-chief.  As a journalist, he has critically observed societal issues and written incisive articles. With experience as a correspondent and international editor, Lee has interpreted the rapid changes of the global era, making him a respected figure in journalism. Lee's critical approach to journalism is anticipated to provide insightful analysis and improvement strategies for Kakao.

 

Kim Jung-Ho, overseeing the Kakao CA Committee's Business Support, represents internal members. As a co-founder of Naver and a driving force in the Naver-Hangame merger, Kim's deep insights into the venture and IT sectors are notable. Since 2012, he has been leading the social enterprise Bear Better, supporting developing and employing individuals with developmental disabilities. He currently serves as the Chairman of the Bryan Impact Foundation, established by Kakao's founder, Kim Beom-Soo, focusing on social responsibility and contribution. Responsible for human resources, audit, and business support within the KakaoGroup since September, Kim, as an internal member, is set to bridge Kakao and the Committee.

 

❏ Committee to commence activities following establishment of legal framework for effective sanctions.

 

Established as an independent entity separate from Kakao, the 'Compliance and Trust Committee' is poised to serve as a robust executive mechanism, revitalizing the legal compliance and internal control frameworks of Kakao's affiliates. Empowered to act decisively in cases of compliance breaches or risks, the Committee holds the authority to ▲demand internal probes within affiliates, ▲undertake direct investigations, and ▲call for the urgent suspension of key decision-making entities.

 

To initiate its activities on a legal basis, the Committee is set to formalize agreements with Kakao's affiliates, following board resolutions from each respective company. The initial focus is on thoroughly examining various allegations raised in the media and by regulatory bodies, developing strategies for prevention and safeguarding affected parties. The Committee also aims to conduct a deeper analysis of the business practices of Kakao's affiliates, identifying potential legal and ethical risks in their dealings with users and stakeholders, and to establish a compliance system geared toward reducing these risks and fostering mutual growth.

 

The Committee, along with its members, plans to set up a secretariat to implement its policy intentions. This will involve close communication with the legal, compliance, and audit departments of each affiliate, thereby ingraining a culture of compliance and ethical management within the company. Additionally, the Committee intends to launch a dedicated website to continually disclose its activities, maintaining transparency based on substantial truths.

 

Chairperson Kim So-Young stated, "As Kakao, a leading IT company that has spearheaded our country’s venture industry, now faces social criticism due to various allegations, I believe it's time for a rebirth as a responsible corporation. To achieve this, our focus will be on suggesting that the KakaoGroup's management fundamentals should revolve around ethical practices, prioritizing social values such as compliance and coexistence beyond mere financial indicators like revenue. I hope the public will show interest in the KakaoGroup, which is deeply integrated into the daily lives of citizens, as it strives to regain public trust and recognition." (End)