Kakao appoints scandal-ridden former executive of KakaoBank as new CTO

SEOUL, Kakao Corp., the operator of South Korea’s top mobile messenger, has appointed Jung Gue-don, scandal-ridden former chief technology officer (CTO) of its financial affiliate, KakaoBank Corp., as its new CTO, industry sources said Tuesday.

The appointment came more than a year after Jung stepped down as KakaoBank’s CTO last year amid public criticism over sales of his shares in the bank in August 2021, shortly after it went public.

At the time, Jung reportedly raised billions of won worth of profit through selling more than 117,000 shares of the company, driving down the stock price of KakaoBank.

The move was also made despite a recommendation from Kakao’s compliance and credibility committee last month, calling on the company to devise measures to prevent management risks deriving from executives’ actions.

Kakao established the independent committee last year as part of its efforts to improve the company’s ethics management system following public criticism over stock manipulation allegations invol
ving its executives.

“It is difficult to find someone who has enough experience to take the role of CTO at a company like Kakao,” a Kakao official said, noting the company is working to come up with measures to reduce its management risk.

Source: Yonhap News Agency