Kakao Founder Kim Beom-soo arrives at the Seoul Southern District Court to attend a hearing for arrest warrant, July 22, 2024. Korea Times photo by Park Si-mon

Kakao said Thursday company founder Kim Beom-su will step down as co-chair of its top corporate decision-making body due to health reasons.

The Korean tech giant, which operates Kakao Talk, the country's leading messaging service, said Kim will resign from his co-chair position at Kakao's Corporate Alignment Council (CAC).

Following his departure, the CAC will transition to a sole leadership structure under Kakao CEO Chung Shin-a. Kim, however, will continue in his role as head of Kakao's Future Initiative Center to focus on the long-term vision and strategy for the company.

According to a company official, Kim was recently diagnosed with early-stage bladder cancer and will be focusing on treatment.

"With CEO Chung already leading key company initiatives, this transition is expected to have minimal impact on Kakao's overall management," the official added.

Additionally, Kakao will conclude activities of its management reform committee, through which Kim had been spearheading efforts to revamp the company's governance and operations since November 2023.

Kim is currently facing a trial over allegations of stock price manipulation related to Kakao Entertainment's acquisition of SM Entertainment, where he is accused of obstructing a competitor's public tender offer. (Yonhap)