Kakao Corp. (KOSE:A035720) is coming under intense criticism over its plan to sell off over 10% of its stake in its mobility affiliate, Kakao Mobility Co., Ltd. to a private equity fund (PEF), according to industry and firm officials, July 11, 2022. However, employees of the mobility affiliate call it an irresponsible tactic to altogether dodge accountability for the recent failures in corporate performances and rapidly souring public sentiment.

Whether the escalating conflict will dial down remains to be seen, as it will be managed by the Corporate Alignment Center (CAC), a body of Kakao overseeing its subsidiaries. The CAC will hold a meeting with mobility employees soon, according to an industry watcher close to the matter, in an attempt to address concerns about the firm essentially making a hefty short-term profit at the expense of workers left vulnerable to pay cuts and layoffs. Kakao Executive Vice President Bae Jae-hyun said in a July 6, 2022 message on the firm's intranet that it "is considering selling off about 10% of Kakao Mobility shares, thereby becoming the second-largest shareholder of its mobility affiliate.

" Up in armsbr br Unionized workers of Kakao Mobility held a press conference in Seoul, blasting Kakao's plan to sell part of its 57.5% stake in the mobility affiliate to MBK Partners, a local PEF."Behind the rapid growth of Kakao, Korea's leading platform operator, were the blood and sweat of numerous workers," the workers said.