Kakao founder Kim Beom-su speaks during a National Assembly audit in Seoul in this October 2021 file photo. Korea Times photo by Oh Dae-keun

By Park Jae-hyuk

Kakao founder Kim Beom-su has offered to resign as board chairman to better focus on leading his company's overseas expansion, just as his chief rival, Naver founder Lee Hae-jin, had done five years ago.

"'Beyond Korea' is Kakao's own mission and Korean society's request to pioneer the new lands of foreign markets," Kim said in a message to all of Kakao's employees, Monday. "I hope you will join the new voyage to our dream of becoming a great company surpassing global IT firms."

According to Kakao, the founder will maintain his positions as head of the Kakao Future Initiative Center and an inside director of Kakao Piccoma, a Japanese subsidiary providing a webtoon subscription service, so that he can focus on the company's business in the Japanese market, where Naver has dominated.

"Our affiliates have separately expanded their overseas presences, but they will start maximizing the synergy effect under the leadership of Japan's Kakao Piccoma," Kakao said in a press release. "Kim previously pioneered in the Japanese market, when he set up Hangame Japan in 2000."

Kakao CEO nominee Namkoon Whon also expressed the company's intention to expand its presence overseas, saying that Korean language-based smartphone users account for only 1 percent of the world's entire population using smartphones.

Kakao said that the board member reshuffle will take place after its general meeting of shareholders on March 29. While the founder decided to step down as board chairman, Kakao Alignment Center CEO Hong Eun-taek was nominated as a new inside director.

Naver founder Lee Hae-jin speaks during a National Assembly audit in Seoul in this October 2021 file photo. Korea Times photo by Oh Dae-keun

Kakao's latest decision is expected to cause fierce competition with Naver in Japan, according to industry officials.

On the day Kakao announced its founder's resignation, Naver's new CEO Choi Soo-yeon also emphasized the importance of its global business.

"All of Naver's businesses took into account the global market from the beginning," Choi said at the company's general meeting of shareholders. "From now on, Naver will be an incubator of new businesses that can continue producing global brands which can surpass LINE, Naver Webtoon and Zepeto."

Naver has continued its expansion in the Japanese market through LINE, which was launched initially as Naver's Japanese subsidiary and eventually became a SoftBank subsidiary in 2021, after Naver and SoftBank agreed to establish a joint venture controlling both LINE and Yahoo! Japan.

The Naver founder, who is serving as the company's global investment officer, began leading LINE since 2013 as its chairman, although he stepped down from his position as Naver board chairman in 2017 to focus on his company's overseas expansion.