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Chung Shin-a, CEO of Kakao Corp.. (Photo: Yonhap News Agency) |
[Alpha Biz= Ellie Kim] SEOUL, June 2 — Chung Shin-a, CEO of Kakao Corp., is facing mounting challenges following her reappointment, with labor tensions escalating internally and user backlash over KakaoTalk reforms intensifying externally.
Chung issued an internal message on May 28 apologizing for the breakdown in wage negotiations with the company’s labor union, saying she was “deeply sorry” for failing to swiftly resolve uncertainties and concerns. The move came after the Gyeonggi Regional Labor Relations Commission suspended mediation in the second round of wage talks, effectively granting the union the right to strike. The union has since warned of a possible strike in June.
At the same time, Kakao’s flagship messaging platform KakaoTalk has faced organizational and user-related challenges. Hong Min-taek, the company’s Chief Product Officer (CPO) who led last year’s KakaoTalk overhaul, recently submitted his resignation and is in the process of stepping down.
The overhaul, introduced in September, added a grid-style feed to the KakaoTalk friends tab, transforming it into a more social media-like interface. The change drew criticism from users who preferred the traditional contact-focused layout, despite boosting advertising revenue from the platform’s “Talk Biz” segment.
In response, Chung has initiated a restructuring of the organization. Kakao plans to split its product division into two units — KakaoTalk and Business — while consolidating previously dispersed design teams. A new “User First” task force will also be established within KakaoTalk to enhance user communication and improve service quality.
Chung secured her second term as CEO at the company’s annual general meeting in March, but now faces a complex balancing act. KakaoTalk remains the core revenue driver for the company, and Kakao is pushing to expand monetization through artificial intelligence-based services, advertising and commerce.
However, concerns are growing over the trade-off between accelerating monetization and increasing user fatigue. Industry observers warn that if KakaoTalk begins to feel overly commercialized, its status as the nation’s dominant messaging platform could become a liability.
An industry official said the company is “losing user trust externally while facing rising employee dissatisfaction internally,” adding that Chung’s key challenge will be to restore KakaoTalk as a user-centric platform while addressing the risk of labor unrest.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
