Rim Ji-hoon, chief executive of Kakao, the developer of Korea’s most-used mobile messenger, has recently been buying company stocks on the market in an apparent move to boost his leverage over the firm, according to news reports that cited investment banking sources.
Last week, Rim acquired 1,522 shares of the company listed on the tech-heavy KOSDAQ at 98,800 won ($84.60) per share, with his equity ownership in Kakao now amounting to 4,264 shares.
He previously bought 2,742 shares at between 100,000 and 110,000 won early this year. His Kakao shares do not amount to much even after the acquisition given that his ownership in the company is close to zero percent, according to the company’s first quarter audit report. Kim Beom-soo, founder and chairman of Kakao, is the biggest shareholder with an 18.65 percent stake, followed by Kim’s K Cube Holdings with a 14.75 percent stake.
(Yonhap)
Sources say that the increase in stock purchase was in line with Rim seeking greater responsibility over the company, as Kakao managed by Rim is facing doubts over the prospects of the company. Others noted his share acquisition amid a fall in its share price.
Kakao has been performing below market expectations, despite aggressive buyouts and the release of new online-to-offline commerce services. With its core revenue from mobile games and advertisements losing luster, the company posted an operating profit of about 30 billion won in the first quarter of this year, down from 44 billion won a year ago.
More than 50 percent of its revenue comes from mobile advertisements, followed by 29 percent from mobile games linked with Kakao Talk, which has a market share of 95 percent in the domestic mobile messenger sector, according to the company.
E-commerce only accounts for about 7 percent of its total revenue.
Its shares had a 52 week high of 145,200 won and a low of 90,600 won. The company closed at 98,000 won last Friday.
By Park Hyong-ki (
hkp@heraldcorp.com)
