SEOUL, Nov. 1 (Yonhap) — Kakao Mobility Corp., the operator of the country’s most popular taxi-hailing service, declared on Wednesday their intention to modify their commission system in the wake of claims of monopolistic market behavior.
Kakao Mobility reported in a press statement that they plan to consult with the taxi industry soon to get feedback on the commission system for their Kakao T service.
This announcement came shortly after President Yoon Suk Yeol expressed his apprehension regarding monopolistic practices, especially in the banking and taxi-hailing sectors.
Yoon particularly highlighted the business practices of Kakao Mobility, accusing the company of exploiting its dominant market position.
Kakao Mobility acknowledged the worries that have recently been voiced and declared their intentions to address them.
This image shows the corporate logo of Kakao Mobility Corp. (PHOTO NOT FOR SALE) (Yonhap)
Kakao Mobility is a mobility subsidiary of South Korea’s tech giant Kakao Corp., the provider of South Korea’s most popular mobile messenger KakaoTalk.
Kakao has been the subject of negative press recently, especially in regards to allegations of stock price manipulation by its executives.
Kakao is accused of inflating the stock price of K-pop agency SM Entertainment Co. by investing around 240 billion won (US$177.6 million) to win a bidding war against Hybe Co., the K-pop powerhouse behind global superstar BTS, in February.
Last week, the Financial Supervisory Service, the financial regulator, referred Kakao, Kakao Entertainment and three of the company’s senior executives, including chief investment officer Bae Jae-hyun, who was arrested earlier this month, to prosecutors over the allegations.
odissy@yna.co.kr
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