KAKAO HEAD QUESTIONED DURING STATE AUDIT

[Anchor Lead]

The heads of domestic online platform companies were grilled during the ongoing state audit on their sprawling business expansion. The founder and chairman of Kakao, Kim Beom-soo, received most of the questions. He apologized for social criticism and once again vowed to scrap all business activities that infringe upon the commercial rights of traditional mom-and-pop shops.

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The heads of big tech platform companies were summoned to the state audit for questioning. They were grilled on sprawling business expansion and infringement on the commercial rights of traditional mom-and-pop shops.

[Soundbite] Kang Min-kuk(National Policy Committee) : "Because of business sprawling, commissions are going up and it's the public that has to bear the burden. That's how monopolies cause harm."

[Soundbite] Kim Han-jung(National Policy Committee) : "Flower delivery, English education, indoor golf clubs, nail care, hair salons, designated driving, quick delivery service... Don't you feel ashamed?"

Kakao founder and chairman Kim Beom-soo attended the session for the first time in three years. He apologized repeatedly. Kim vowed to scrap all business activities that infringe on community businesses.

[Soundbite] Kim Beom-su(Kakao chairman) : "I apologize. We will not infringe on community businesses. If our businesses are found there, we will withdraw no matter what."

Follow-up measures for preventing tech giants from imposing in-app payment was also a subject of heated discussion.

[Soundbite] Han Jun-ho(Science, ICT, Broadcasting & Communications Committee) : "You were requested to present your app market business plan by October 11. Is that right?"

Google Korea CEO Kim Kyung-hoon said he respects the bill even though he disagrees with some of its aspects.

[Soundbite] Kim Kyoung-hoon(Google Korea CEO) : "We are trying to find ways to respect the bill. We're working on it with the team in charge."

The government is maintaining a cautious stance on regulating platform companies. Korea Communications Commission chief Han Sang-hyuk says policies should be devised based on the impact of regulations on overseas platforms. Fair Trade Commission head Cho Sung-wook pointed out it's too soon to take strong measures against tech giants like how it's being done in the U.S.