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Kakao Co-CEO resigns after an outage that hit millions caused chaos


Kakao Corp., Co-Chief Executive Officer, Whon Namkoong may resign after a widespread service outage that caused chaos in a nation heavily reliant on the South Korean internet giant, Yonhap News reported.

Namkoong will make an apology for the disruption in services and is expected to offer to resign, Yonhap reported, without attribution. Kakao earlier said it will hold a press conference at 11 a.m. local time to announce its future plans compiled by an emergency committee headed by co-CEO Euntaek Hong.

Public criticism of Kakao and its affiliates has escalated following the blaze at an SK C&C data centre in the south of Seoul on Saturday. The internet giant struggled for hours to recover operations of its popular messaging service, used across the country by Government officials and businesses. Its services, including payment, banking, and gaming, halted during that time. As of Wednesday, most services, including KakaoTalk, Korea’s No. 1 messenger app, were restored.

Kakao shares gained as much as 5.7% in Seoul trading, rebounding for the second straight day after the fire triggered a selloff earlier this week. Affiliates, including KakaoBank Corp. and Kakao Pay Corp., also rose more than 5%.  

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