S.Korea Cuts Kakao Mobility Fine to KRW15.1B Over Market Abuse

Sejong, South Korea - The Fair Trade Commission (FTC) has finalized a KRW 15.1 billion (US$10.5 million) fine against Kakao Mobility for abuse of market dominance, a significant reduction from an earlier penalty of KRW 72.4 billion (US$50.4 million).

The antitrust watchdog said the reduction follows the Securities and Futures Commission's final decision that Kakao Mobility should apply net accounting standards rather than gross revenue calculations.

Under the original accounting method, Kakao Mobility recorded the full 19% franchise fee as revenue while booking the 16.7% partnership fee paid to franchise taxis as operating costs, resulting in a net revenue of approximately 2.3%.

The FTC had initially agreed on the higher fine amount during its September 25 deliberation, citing uncertainty about the Securities and Futures Commission's final judgment on Kakao Mobility's accounting practices.

The regulator confirmed that it has maintained its September 25 decision to issue a corrective order and pursue criminal charges against the corporation in addition to the monetary penalty.

The case timeline shows progression from the initial presentation in February 2024 through accounting standard violations noted in March, leading to the FTC's full committee review in September and culminating in the Securities and Futures Commission's final decision on November 6.