KaKao co-CEO steps down over service outage


SEOUL, South Korea –

A high government of South Korea’s largest cell chat app, Kakao, stepped down on Wednesday over a widespread service outage that triggered an outpouring of complaints in a rustic that’s closely reliant on such expertise.

Namkoong Whon, who grew to become Kakao’s co-CEO in March, stated he’ll resign to deal with his position because the chief of the corporate’s emergency job drive for fixing the technical issues uncovered by the outage, which was attributable to a hearth at a knowledge heart close to Seoul on Saturday.

The hearth initially paralyzed most of Kakao’s companies, inflicting big disruption in a rustic the place hundreds of thousands of individuals depend on the apps to talk with mates, wire cash, and hail taxis. Critics say the severity of the outage and Kakao’s sluggish restoration efforts highlighted the corporate’s poor backup techniques and its overreliance on outsourced servers.

Kakao stated most of its companies have been working usually as of Wednesday morning. SK C&C, which hosts Kakao’s servers at its knowledge heart in Pangyo, reportedly resumed offering full ranges of electrical energy to these servers earlier on Wednesday after restoring the broken techniques.

“Because of the info heart hearth, I really feel extra depressing than ever and take to coronary heart my grave duty. I’ll step down to display Kakao’s willingness for renovation and alter,” Namkoong stated in a information convention. Hong Eun-taek is now the corporate’s sole CEO.

According to market evaluation agency WiseApp, Kakao’s free chat app had round 45 million lively customers as of April, an enormous presence in a rustic with a inhabitants of round 51 million. The firm has used the recognition of the app to department out to banking, on-line procuring and Uber-like taxi companies lately. Its app additionally has been a part of the nation’s COVID-19 response, together with reservations for vaccines and use of QR codes for an infection tracing.

Kakao’s chat customers had dropped to round 39 million in the course of the outage within the weekend individuals started utilizing different options similar to Facebook’s Messenger, Telegram and Naver’s Line, WiseApp stated.

South Korean President Yoon Suk Yeol stated Kakao’s service outage additionally uncovered the issues of its dominant market presence and added that the nation’s antitrust watchdog was analyzing competitors points.

“If a market turns into distorted by a monopoly or a extreme oligopoly, particularly to the extent the place the (companies) start to operate like a nationwide infrastructure, the federal government ought to in fact reply with crucial measures to guard the pursuits of individuals,” Yoon stated Monday.


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