Kakao Co-CEO Resigns Following Massive Data Center Fire Outage
Kakao co-CEO Whon Namkoong steps down after a fire at an SK C&C data center knocks out major services for millions of South Koreans. The company pledges hundreds of millions to build its own server infrastructure.
Whon Namkoong, co-chief executive of Kakao, resigns to take responsibility for a massive outage that disrupts major services across South Korea. A fire at an SK C&C data center in Pangyo knocks out Kakao’s messenger, ride-hailing, payment, banking, and gaming platforms over the weekend. Namkoong apologizes for the extended disruption and expresses a heavy burden of responsibility for the incident.
The outage reveals Kakao's heavy reliance on a single external data center and a lack of a well-distributed backup system. Because KakaoTalk serves over 47 million of South Korea's 51.7 million residents, government officials and businesses treat the app as essential national communications infrastructure. Most services are now almost fully operational, though the slow recovery process draws sharp criticism from analysts and the public.
Remaining co-CEO Euntaek Hong takes over as the sole head of the company and leads the ongoing emergency response. In response to the crisis, Kakao plans to invest 460 billion KRW, or approximately $325 million, to construct its own data center starting next year. South Korean President Yoon Suk-yeol emphasizes the app's critical role as national infrastructure, while Kakao's stock tumbles before recovering slightly on the news of the leadership change.