[Edaily Reporter Kim Hyun-ah ] Hong Min-taek, the former Chief Product Officer (CPO) whom Kakao(035720)recruited in February 2025 to infuse the company with “innovation DNA,” has left the company after approximately one year and three months, with his total compensation amounting to 2.816 billion won.

Recruited with High Hopes for “Innovation DNA”… Led KakaoTalk Overhaul

Hong, a former executive who served as the inaugural CEO of Toss Bank, was tasked with innovating Kakao’s core services after joining the company. In particular, he spearheaded significant changes to the user experience (UX), such as converting the “Friends” tab in KakaoTalk—which had previously been a list-based format—into a social media feed-style layout.

However, this significant change to the familiar user interface sparked a backlash from users, and Kakao subsequently adjusted some features to bring the friends list back to the forefront. During this process, Hong faced criticism from both inside and outside the company as the person in charge of the KakaoTalk redesign.

Advertising and Subscription Revenue Up 14%… Strong Business Performance as Well

Despite user backlash, the advertising business showed signs of growth.

Kakao’s second-quarter platform revenue reached 1.2303 trillion won, a 17% increase year-over-year. In particular, revenue from TalkBiz advertising and subscriptions rose 14% to 399.9 billion won, while display advertising revenue grew by 28%. Total revenue and operating profit reached 2.00985 trillion won and 277 billion won, respectively, marking the highest quarterly figures in the company’s history.

However, it is difficult to directly attribute this improvement in performance to the individual achievements of former executive Hong. Given that the KakaoTalk redesign and the expansion of the advertising business occurred simultaneously, it is necessary to distinguish between the company’s overall performance and his personal contribution.

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8 Billion Won in Compensation… Kakao: “Comprehensive Reflection of Salary, Bonuses, Severance Pay, etc.”

With the disclosure of former executive Hong’s total compensation of 2.816 billion won following his resignation, concerns have reportedly emerged within Kakao regarding the compensation gap between regular employees and executives.

It is reported that on an anonymous workplace community forum, employees recently voiced a sense of deprivation regarding the payment of a large sum to a specific executive, especially given the limited scope of salary increases and improvements in working conditions for regular staff. Some employees reportedly questioned the executive compensation system, asking, “Is one executive worth as much as 1,000 employees?”

Executive compensation is determined in accordance with relevant procedures, taking into comprehensive consideration the value of the position, individual capabilities, business performance, and tenure. Specific payment terms for individual executives are not disclosed.

A Kakao spokesperson stated, “The compensation for former CPO Hong Min-taek comprehensively reflects his salary, bonuses, severance pay, and other earned income,” adding, “Executive compensation is determined through relevant procedures in accordance with publicly disclosed calculation standards.”

As an external talent recruited by Kakao with high hopes for “innovation DNA” has left the company after approximately one year and three months, the debate surrounding this compensation package—estimated at 2.8 billion won—is expected to spark interest in how Kakao’s executive compensation system is evaluated and how the results of the KakaoTalk overhaul led by former executive Hong will be assessed.