SEOUL - Amid scrutiny from South Korea's Financial Supervisory Service (FSS), Kakao Mobility Corp. is considering the reappointment of CEO Ryu Geung-seon, despite recommendations for his dismissal due to alleged accounting irregularities.
According to Yonhap News Agency, Kakao Mobility's upcoming general shareholders' meeting will address whether to reaffirm Ryu Geung-seon as CEO following the FSS's advice to oust him over accusations of falsifying financial records. The controversy centers on Kakao Mobility's reported inflation of revenue figures by manipulating taxi driver membership fees. In response to these allegations, the FSS announced intentions last month to refer the firm and its executives for prosecution and levy a 9 billion-won fine.
Despite these challenges, Kakao Mobility has adjusted its accounting practices, which notably decreased its reported annual sales from 1 trillion won to 600 billion won. The company acknowledges the pending decision on Ryu's leadership role, underscoring his achievements while at the company's helm. This situation unfolds as Kakao Mobility and its parent entity, Kakao Corp., face broader public backlash over alleged unethical business conduct and governance issues.