Kakao Corp’s co-CEO Namkoong Whon has stepped down, the corporate stated on Wednesday, after an outage that shut down South Korea’s largest cell chat app and different companies, triggering widespread backlash from authorities and the general public.
The resignation, efficient Wednesday, leaves co-CEO Hong Euntaek as sole CEO.
The corporate apologized for the outage that began on Saturday because of a hearth at an information heart run by SK C&C close to Seoul.
Most of its methods have been restored by Wednesday, however miscellaneous capabilities stay shaky and disruptions to a variety of companies from funds to taxis and restaurant bookings have raised questions on public reliance on the app.
KakaoTalk, launched in 2010, has greater than 47 million lively accounts in South Korea, making it one of the ubiquitous apps within the nation of 51.6 million.
Hong, who can be main the corporate’s response to the outage, stated Kakao would look into why service restoration work was gradual, put together compensation for customers and companies affected by service disruptions and construct its personal knowledge facilities.
“We’ll construct our personal infrastructure together with knowledge facilities to make sure our companies is not going to be affected by comparable incidents going ahead,” Kakao stated in an announcement.
The corporate plans to speculate 460 billion gained ($325 million) to begin working its personal knowledge heart from subsequent yr, and one other one can be accomplished within the following yr, it stated.
Greater than 500 small companies complained about misplaced gross sales because of the Kakao outage, foyer group Korea Federation of Micro Enterprise stated.