Kakao, a leading mobile platform operator in South Korea, is facing increased regulatory scrutiny as several subsidiaries are under investigation.

Additionally, the company’s labor union has criticized management for excessive spin-offs that they claim have destabilized the organization.

On Mar. 24, 2025, Kakao Entertainment was fined 390 million won (US$265,000) by the Fair Trade Commission for deceptive advertising. The company reportedly promoted music content through undisclosed social media accounts, violating transparency regulations.

Kakao Mobility, which operates the country’s leading taxi-hailing service, is also under investigation. Prosecutors are looking into allegations of inflated revenues, with searches conducted at its Seongnam office and the homes of key executives last week.

Concerns have been raised about Jung Joo-hwan, the former head of Kakao Mobility, who exercised stock options worth US$6.5 million. While this action was legal, it has sparked investor concerns regarding corporate ethics.

Recent Kakao developments