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Kakao’s co-CEO Whon Namkoong resigned after a widespread outage caused chaos in a nation heavily reliant on South Korea’s most popular messaging app. Photo: Bloomberg

Kakao co-CEO Whon Namkoong quits over South Korea app outage chaos

  • The company also apologised for major service disruptions that started last weekend due to a fire at a data centre near Seoul
  • More than 500 small businesses complained about lost sales due to the Kakao malfunction
South Korea
Co-CEO of Kakao Corp Namkoong Whon has stepped down, a company filing said on Wednesday, after an outage that shut down South Korea’s largest mobile chat app and other services, triggering sharp backlash from authorities and the public.

Namkoong’s resignation was effective as of Wednesday, the filing said, leaving co-CEO Hong Euntaek as sole CEO.

The company apologised on Wednesday for the outage that started on Saturday due to a fire at a data centre run by SK C&C near Seoul.

Most of its systems were restored by Wednesday, but miscellaneous functions remain shaky and disruptions to a wide range of services from payments to taxis and restaurant bookings have raised questions about public reliance on the app.

KakaoTalk, launched in 2010, has more than 47 million active accounts in South Korea, making it one of the most ubiquitous apps in the country of 51.6 million.

Hong, who is also leading the company’s response to the outage, said Kakao would look into why service recovery work was slow, prepare compensation for users and businesses affected by service disruptions and build its own data centres.

“We’ll build our own infrastructure including data centres to ensure our services will not be affected by similar incidents going forward,” Kakao said in a statement.

The company plans to invest 460 billion won (US$325 million) to start operating its own data centre from next year, and another one will be completed in the following year, it said.

More than 500 small businesses complained about lost sales due to the Kakao outage, lobby group Korea Federation of Micro Enterprise said.

Co-CEO of Kakao Hong Euntaek. Photo: Bloomberg
The malfunction is a blow for hyper-wired South Korea, which aims to stay at the forefront of technological change.
South Korean President Yoon Suk-yeol called for an investigation into the cause of the damage and plans to prevent similar incidents in the future.

“I feel very heavily about the inconvenience and damage that Koreans are experiencing,” Yoon said, according to a statement from the presidential office.

“In addition to identifying the exact cause, measures to prevent accidents – including the installation of twin data centres – and a reporting and action system in case of an accident, should be thoroughly prepared,” he said.

Additional reporting by Agence France-Presse

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