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Photo = Kakao Mobility |
[Alpha Biz= Kim Jisun] The former CEO of Kakao Mobility, currently under multiple prosecutorial investigations over allegations of ride allocation manipulation and revenue inflation, has reportedly exercised a significant amount of stock options.
According to the ICT industry on Sunday, Jeong Joo-hwan, former CEO of Kakao Mobility and current vice president of Kakao, exercised stock options on shares reaching maturity. The details will be included in Kakao Mobility’s business report, set to be disclosed later this month following the company’s shareholder meeting this week. Industry estimates suggest that Jeong’s stock option exercise could yield profits of approximately 9.5 billion KRW. However, he has not yet sold the shares, meaning no immediate gains have been realized.
Stock options grant employees the right to purchase company shares at a predetermined price within a specific period. They are commonly used in the IT sector as incentives for employees who contribute to company performance, as profits increase when stock prices rise.
Despite no immediate financial gains, criticism is expected, given the ongoing legal scrutiny surrounding Kakao Mobility. Jeong, who played a key role in shaping the company’s management structure, stands to earn nearly 10 billion KRW through this move. Meanwhile, the Seoul Southern District Prosecutors’ Office conducted raids on Kakao Mobility’s offices in Bundang, Seongnam, and employee residences on the 20th as part of its investigation into allegations of inflated revenue reporting. Prosecutors are reviewing data provided by the Financial Supervisory Service regarding overstated revenue and expenses. A separate investigation was launched last November into accusations that Kakao Mobility manipulated ride allocations in favor of its affiliated taxi service, Kakao T Blue.
Against this backdrop, Kakao Mobility is set to vote on the reappointment of CEO Ryu Keung-seon at the upcoming shareholder meeting. Additionally, former CFO Lee Chang-min, who previously stepped down amid financial misconduct allegations, is preparing for a return.
Lee resigned after the Financial Services Commission’s Securities and Futures Commission ruled that Kakao Mobility violated accounting standards, imposing fines of 340 million KRW each on both the company and executives, including himself and CEO Ryu. Last month, Lee filed for an injunction to suspend the regulatory decision, which the court recently granted. Following this ruling, Kakao Mobility is reportedly planning to reinstate Lee, likely to his previous role as Chief Operating Officer (COO).
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
