Fintech giant Kakao Pay's top execs quit after investor revolt

Seou;

KAKAO Pay's 3 most senior executives resigned on Thursday (Jan 20) as an investor revolt rocked its parent, the once high-flying leader in South Korean social media and fintech.

Chief executive officer Alex Ryu, chief financial officer Kijoo Chang and chief business officer Jin Lee told Kakao of their intention to quit, the company said in a statement. While Ryu's term was slated to end in March, the departures of his 2 closest lieutenants came as a surprise and will take immediate effect. The Korean company's board will vote on Ryu's departure soon, a spokesperson said.

Ryu last week abruptly withdrew his candidacy to lead parent Kakao Corp, casting doubt over leadership of the South Korean tech giant, which nominated another candidate on Thursday.

That came after Ryu and other executives were criticised by shareholders for selling down some of their stake in the stock-market darling following its blockbuster debut in November. The sales soured investor sentiment and triggered a sell-off that at one point wiped out over US$25 billion of market value in Kakao Pay and affiliates such as KakaoBank.

The resignations came a day after local media including Yonhap News reported that police were looking into allegations that Kakao's founder, Brian Kim, dodged 886 billion won (S$1 billion) of taxes during the 2014 merger of Kakao and Daum. Kakao called the allegations "groundless", adding that the merger had been cleared by shareholders.

Shares of Kakao's listed vehicles rebounded Thursday after sharp losses the previous day. Kakao Pay gained 6.3 per cent, its biggest gain in 3 weeks. BLOOMBERG