Internal audit related to corruption at Kakao, data center, etc. Compliance committee member accused of ‘verbal language’

2023-11-28 09:29:00

Provided by Kakao

Kakao began an internal audit after receiving reports of corruption in the process of selecting construction companies for the Internet Data Center (IDC) and Seoul Arena.

According to Kakao on the 28th, the company was accused of corruption in the selection of construction companies for ‘Kakao Data Center Ansan’, its first data center, completed at Hanyang University’s Erica Campus in Ansan, Gyeonggi-do last month, and ‘Seoul Arena’, a large-scale cultural complex scheduled to be completed in Dobong-gu, Seoul in 2025. We have received reports and are conducting audit procedures to determine the facts at the company level.

The report said that Kakao had given the money to an affiliate of a large company by signing a private contract with a specific company rather than transparently going through a public bidding process.

In response to this, Kakao said, “Data Center Ansan selected a construction company through an open bidding process in which a total of three construction companies participated,” and added, “We are confirming the method of selecting a construction company for Seoul Arena.”

The total construction cost of Kakao Data Center Ansan is KRW 424.9 billion, and the amount corresponding to architecture and civil engineering contracted with the construction company is approximately KRW 143.6 billion. The construction cost of Seoul Arena amounts to 300.8 billion won.

Meanwhile, controversy is erupting after it was revealed that Kim Jeong-ho, general manager of management support and compliance member of the Kakao CA Council, swore loudly in front of employees during a meeting.

It is reported that he shouted for about 10 minutes and insulted the employee who was reporting to him during a meeting at the Kakao Pangyo hideout in Seongnam, Gyeonggi-do on the afternoon of the 22nd. General Manager Kim is a member of the first group of the ‘Compliance and Trust Committee’, which was recently launched as an external independent organization, and is responsible for connecting Kakao and the committee.

Kakao said, “There is a fact that (Director Kim) used an inappropriate term once regarding a specific issue,” and added, “We are confirming the circumstances and facts.”

Naver’s co-founder, General Manager Kim, founded ‘Bear Better’ in 2012, a social enterprise that helps people with developmental disabilities start businesses and find employment. This year, he served as Chairman of the Board of Directors of Brian Impact, a foundation established by Kakao founder Kim Beom-soo, and since last September, he has been in charge of overall management support at the Kakao CA Council.

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