SEONGNAM, South Korea, Dec. 18 (Yonhap) — The labor union of Kakao Corp., South Korea’s top messenger operator, on Monday called for the heads of the company’s entertainment unit to step down, as Kakao Entertainment is mired in allegations of stock price fixing.
Kakao has been under criticism for months since its chief investment officer was arrested over allegations of stock price manipulation in connection with a bidding war over K-pop agency SM Entertainment.
The labor union called on Kakao Entertainment’s chief executives to resign and urged Kakao to investigate the allegations involving Kakao Entertainment and its executives.
Kakao Entertainment Corp.’s co-CEO Lee Jin-soo arrives at Kakao Corp.’s headquarters in Pangyo, just south of Seoul, on Dec. 18, 2023, to attend the company’s eighth emergency management meeting. (Yonhap)
Last month, the Financial Supervisory Service referred Kakao’s founder Kim Beom-su and CEO Hong Eun-taek to the prosecution over the allegations.
Amid mounting criticism over various allegations, Kakao has recently been pushing for internal reform to strengthen its ethics management, naming Chung Shin-a, the current head of Kakao Ventures Corp., as its new CEO.
Unionized workers of Kakao Corp. stage a protest at the company’s headquarters in Pangyo, just south of Seoul, on Dec. 18, 2023, to call for leadership reform measures. (Yonhap)
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