Kakao co-CEO resigns, company to invest over $300M to build data center after mass outage • TechCrunch

Whon Namkoong, the co-main government of Kakao, has resigned in a outstanding demonstration of corporate accountability after a fire incident at an SK C&C information centre in the south of Seoul triggered a mass outage about the weekend and disrupted Kakao’s numerous services, which includes messenger, trip-hailing, payment, banking and gaming.

Namkoong, who joined Kakao in 2015, was elevated to the co-CEO purpose this March. At a press meeting on Wednesday, co-CEOs of Kakao apologized for the mass outage “for this kind of an extended period of time.” Namkoong claimed that he feels “the heavy load of responsibility” around the incident, introducing that the corporation will do its finest to restore the religion of people.

Euntaek Hong, co-CEO of Kakao, who led the firm together with Namkoong and is presently foremost Kakao’s unexpected emergency taskforce workforce, will continue to be the firm as the sole head of Kakao, for each a firm submitting.

Kakao said these days morning it had restored extra products and services like Kakaomail and TalkChannel.  Most of its expert services are in almost complete operation, with some remaining partly down.

KakaoTalk is the most well-known messaging app in South Korea, achieving around 47 million of the nation’s 51.7 million inhabitants just about every thirty day period. The app is also utilised by governing administration officials and businesses, such as banking companies, experience-hailing products and services, and payment gamers.

Kakao’s slow restoration system was caused by the company’s absence of owned server infrastructure and “high dependence” on the SK C&C info center, which caught fireplace, analysts at Bernstein mentioned in a report this week. Kakao also didn’t have a well-dispersed backup method, they extra.

Hong said at a push conference currently that the corporation plans to invest 460 billion KRW (~$325 million) to construct its individual info centre from future 12 months, aiming to entire it in the pursuing 12 months.

South Korean President Yoon Suk-yeol said on Monday that KakaoTalk is basically a countrywide communications infrastructure.

Shares of Kakao tumbled on Monday but recovered somewhat on Namkoong’s departure announcement.