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Crisis at Kakao: South Korea’s Tech Giant Faces Leadership Scandal

Daniel Kim Views  

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Kakao
Kakao Pangyo Ajit [Photo: Shutterstock]

[Digital Today reporter Lee Ho-jeong] On June 2, the Kakao branch of the National Chemical, Textile and Food Industry Workers’ Union (hereafter the Kakao union) issued a statement sharply criticizing Kakao’s leadership for abandoning accountable management following the sudden resignation of Chief Product Officer (CPO) Hong Min-taek.

The union said that during Hong’s tenure, aggressive initiatives like the “KakaoTalk Big Bang Project” produced repeated instances of overtime, a deteriorating workplace culture, and disputes over unfair performance-based compensation.

It pointed to specific problems: teams reaching the legal overtime limit, allegations of concealing working hours, workplace harassment, and application of bonus rules that diverged from companywide standards. The union charged that the company failed to offer a responsible explanation and characterized Hong’s departure as a “quiet exit” that avoided accountability without apology or remediation.

The union argued this pattern reflects a chronic problem across the Kakao group. It cited examples including Lee Won-ju, who reportedly held concurrent roles at DK Techin and Kakao Enterprise without exercising real authority; former Kakao CEO Hong Eun-taek; AXZ CEO Yang Joo-il; and former Kakao Enterprise CEO Baek Sang-yeop.

The union alleges these executives either left without sufficient explanation or kept titles while evading responsibility, leaving behind issues such as unilateral elimination of work systems, attempts to sell spun-off units, and widespread job insecurity caused by overambitious expansion.

It labeled the repeated failed hires of outside executives in recent years a “personnel catastrophe,” saying the company brought in external leaders without adequate fact-checking or competency verification. The result, the union said, has been long working hours, job insecurity, distrust in performance evaluations, and organizational disruption passed directly onto frontline workers.

The union urged Kakao to establish structures that hold leadership fully accountable for failed decisions and damage to workplace culture. It said it will work with members to reestablish principles and continue efforts to restore trust.

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