SEOUL, Sept. 29 (Korea Bizwire) — Small businesses are stepping up against internet giant Kakao Corp.’s offensive business expansion that is making life difficult for smaller industry players.
The controversy flared up when Kakao’s mobility unit Kakao Mobility Corp., after announcing its plans to coexist with small businesses this month, recently acquired two additional chauffeur businesses.
Kakao Mobility’s subsidiary CMNP acquired two phone-call chauffeur businesses late last month. The names of these companies have not been revealed.
In late July, it joined hands with 1577 Chauffeuring, the country’s largest chauffeuring business, to build a new phone-call chauffeuring service. The company has since been acquiring more market share through ceaseless investment.
In response, five chauffeuring service platforms held a joint press conference in Seoul on Tuesday, urging Kakao to stop monopolizing the market.
“Kakao means to dominate the market by luring us with a meaningless coexistence fund and by lowering commissions,” said Jang Yoo-jin, head of the Korea Service Driver Association.
The association has asked the Korea Commission for Corporate Partnership, a private body responsible for shared growth among conglomerates and smaller businesses, to designate chauffeuring as ‘SME Suitable’ to prevent large corporations from jumping into the market.
“We have stopped all reviews over additional acquisition after the association made the request via the Korea Commission for Corporate Partnership,” Kakao Mobility said.
H. M. Kang (email@example.com)