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| Officials from a coalition of financial consumer groups, along with a lawyer representing them, hold a press conference before filing a complaint against Kakao Corp. at the Seoul Central District Prosecutors' Office, Tuesday. Yonhap |
By Lee Kyung-min
A coalition of financial consumer groups filed a complaint with the prosecution against Kakao Corp., claiming that the operator of the nation's popular online platform Kakao Talk is willfully overlooking many instances of financial fraud, involving users of the messenger service.
The four groups say Kakao has yet to take any action, despite a number of complaints filed by many consumers that have fallen victim to ads run by people using accounts stolen from financial experts ― notably market analysts at brokerage firms and fund managers.
Also left unanswered in many cases were complaints from financial experts who reported identity theft.
The complaint was filed with the Seoul Central District Prosecutors' Office. Kakao may face charges of aiding and abetting capital market law violations.
One of the victims said he wired 200 million won ($178,000) to what he thought was an account held by a well-known fund manager, following months of consultations to seek investment opportunities using his retirement funds. The conversation took place in a chat room between the two.
An equity market researcher at a local securities firm said he filed a complaint with Kakao after finding an account using his name. But the complaint was apparently met with no appropriate follow-up measures.
Hwang Da-yeon, a partner at the law firm Hye, representing the victims, said that Kakao should have removed the illegal, fraudulent accounts immediately after receiving the reports.
"Under the Capital Markets Act, those without a license to run a financial investment business cannot engage in investment consultations, let alone run an online channel set up precisely to do what is clearly an illegal activity," she said. "Consumers are bearing the full brunt of these crimes, while Kakao is sitting on the sidelines."
According to FnGuide, a financial data provider, Kakao is expected to report 1.242 trillion won in sales during the first three months of this year, as well as an operating profit of 153.8 billion won. These estimates are up 43 percent and 74 percent, respectively, from one year earlier.
Chief among the success drivers are the firm's commerce, content and mobility businesses. Kakao Talk, which includes the commerce business, is estimated to log about 354.9 billion won in sales in the first three months of 2021, compared to a year earlier.
The firm's bank and payment service subsidiaries ― Kakao Bank and Kakao Pay ― plan to seek an initial public offering (IPO) in July at the earliest.
