KaKao

- Appointment of three internal directors, including CEO Chung, and two external directors by the general shareholders’ meeting held on the 28th 

- Plans to establish an AI-dedicated organization to lead the “everyday life AI” trend and reform corporate structure to clarify responsibility and authority

 

[March 28, 2024] On the 28th, Kakao announced that Chung Shin-a had been appointed as the new CEO at the 29th general shareholders’ meeting and board of directors meeting held at the company’s headquarters in Jeju-do. 

 

Internally nominated as the CEO last December, Chung has been leading Kakao’s Reform Task Force, serving as a Co-Chair of the CA Council and Chair of the Strategic Committee. During her service, Chung has strived to navigate Kakao’s reforms and implement detailed directives through various activities, including face-to-face meetings with over a thousand employees in over twenty sessions. Based on her efforts, CEO Chung plans to vigorously pursue securing new, AI-oriented growth engines and establishing a responsible decision-making structure.   

 

# Establishing AI-dedicated organization to lead the “everyday life AI” trend

 

Kakao will first round up its AI-related teams, which are currently dispersed across the company, into an integrated AI organization to strengthen AI technology and services. Multiple groups will be housed in the organization, experimenting with various generative AI-based services, aiming for quick execution and the empowerment of R&D capability. The company’s strategy is to add the most advanced technology to Kakao’s platform development experience, anchoring the company’s position as the leader of the “everyday life AI” era. 

 

Kakao has recruited Lee Sang-ho, former Chief Technology Officer (CTO) of SK Telecom, as its Chief AI Officer (CAIO) to support this plan. Lee is a prominent AI and data expert in Korea, previously serving as Head of SKT’s AI Business Unit, Head of Daum’s Search Division, Founder and CEO of Dialoid, and Head of NAVER’s Search Quality Lab. Lee will oversee the development of AI technology and services by harnessing his outstanding expertise, rich experience, and understanding of Kakao’s culture. 

 

# Establishing a swift and clear decision-making structure and organizational system

 

Kakao will also undergo organizational restructuring to build a system that aligns with its rapidly growing business scale and enables fast and transparent decision-making to fit a tech company of its name.  The focus will be on simplifying decision-making processes and streamlining the organizational and positional structures to clarify responsibilities and authority. The company will also consolidate its fragmented technical capabilities to resolve technical debt and secure technological initiatives. 

 

Moreover, Kakao aims to eliminate work redundancies and silo effects through flexible organization and operations according to each business sector’s features. The purpose of these efforts is to maximize the company’s platform business capacity and provide the best customer experience to users at a consistent level.  

 

# Appointment of new internal and external directors, empowering responsible management, and securing future growth engines

 

Kakao also appointed new internal and external directors, each equipped with unique expertise, to strengthen responsible management and secure future growth engines.

 

Along with CEO Chung, Kwon Dae-yul, the ESG Commissioner, and Jo Sug-yung, the Group Compliance Head, both from the CA Council, were appointed as the new internal directors. They will actively engage with various stakeholders and showcase their expertise in establishing advanced governance systems and ethical management.

 

Ham Choon-seung, CEO of PHN Company, and Cha Kyung-jin, a professor specializing in Management Information Systems at Hanyang University, will join as new external directors. CEO Ham is an expert in finance and capital markets, serving as CEO of Citigroup Global Markets Korea Securities. Professor Cha is an expert in data and AI. Based on her profound understanding of her respective areas, she is anticipated to offer strategic advice on future growth strategies and business opportunities.

 

 CEO Chung stated, “We will accelerate our reforms to meet the expectations of both internal and external stakeholders and shareholders. Through the development of AI-based services unique to Kakao, we will also secure new growth engines.” 

 

All eight agenda items passed as initially proposed at this year’s Annual General Meeting of Shareholders, which include: (a) appointment of directors; (b) approval of financial statements; (c) partial amendments to the articles of incorporation; (d) appointment of members to the Audit Committee; (e) approval of the remuneration limit for directors; (f) cancellation of treasury shares; (g) amendments to the retirement payment regulations for directors; and (h) approval of stock option grants. [End]