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[Alpha Biz=(Chicago) Reporter Paul Lee] The Kakao labor union recently urged Kakao Entertainment to clarify the cause of the problem over its alleged acquisition of a high-priced drama production company.
The Kakao labor union held a 'picketing related to Kakao Entertainment' protest near the Kakao Entertainment office in Gongpyeong-dong, Jongno-gu, Seoul on the 8th.
The labor union held protests with pet words such as "Resign from management failures and illegal management," "Enforce a full investigation into mergers and acquisitions and unfair transactions," and "Take responsibility for management failures and carry out personnel reshuffles."
The union criticized, "Kakao Entertainment has carried out internal cost cuts and some voluntary retirement in the wake of this year's management crisis. In this situation, executives have remained silent without properly revealing or identifying the problems of management failures, although they have yet to be found to be true."
The union called for an internal audit or an investigation by some outside independent agency.
In addition to Kakao's alleged manipulation of SM Entertainment's market price, the prosecution is also expanding its investigation into the alleged acquisition of high-priced drama production company Wind Pictures. In this regard, Lee Joon-ho, head of Kakao's investment strategy division, and Kim Sung-soo, head of Kakao Entertainment, have been booked.
Kakao bought its production company, Baram Pictures, for 20 billion won in 2020, and is suspected of buying higher than the market price and increasing a company that had been suffering operating losses for years with 100 million won in capital, causing damage to the company.
In a question-and-answer session after the protest, Seo Seung-wook, head of Kakao's labor union, said, "In addition to the controversial production company, there are many companies that have been acquired by Kakao Entertainment. It is not clear whether these companies have carried out a proper valuation."
He urged employees not to insist on voluntary retirement, but to reveal what actually caused the management failure.
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
