[비즈한국] Kakao, which recently implemented a comprehensive overhaul of ‘KakaoTalk035720’ for the first time in 15 years, has announced plans for improvement following user outcry. Since the update, which introduced features like grid-style feeds and short-form content, Kakao’s stock price has plummeted by more than 6%, wiping out over 3 trillion won in market capitalization in a single day. Amidst criticism that business interests were prioritized over user convenience, Chief Product Officer (CPO) Hong Min-taek is being held responsible as the search for the cause of this ‘misstep’ begins. With reports indirectly suggesting that even internal staff held concerns, his leadership capabilities are now being put to the test.
Character
CPO Hong Min-taek is a young leader born in 1982 with an engineering background. He made a name for himself in the industry as a product strategist involved in the operation of Samsung Electronics’005930 mobile payment system, ‘Samsung Pay,’ and the financial app ‘Toss.’
Hong entered KAIST in the class of 2000, earning both a bachelor’s and a master’s degree in industrial engineering. After graduating, he worked at IBM Korea for two years starting in 2010 before moving to a consultant role at the global consulting firm Deloitte.
Subsequently, he completed his Master of Business Administration (MBA) at INSEAD in France in 2013 and began working for Samsung Electronics’ Mobile Division in 2014. It was at Samsung Electronics that Hong truly began his journey in fintech. He served as a key member during the launch and operation of Samsung Pay, leading efforts to enter the U.S. market and participating in joint business ventures with global banks such as Bank of America.
Career
He joined Toss in 2017. Hong joined Viva Republica, the parent company of Toss Bank, where he served as a Product Owner (PO) during the launch of ‘easy remittance.’ He oversaw banking operations for three years and, starting in January 2020, served as the CEO of the Toss Innovation Preparatory Corporation, spearheading the efforts to obtain preliminary and final licenses for Toss Bank.
In 2021, Toss Bank became the third internet bank in Korea to receive a final license, and it officially began operations at the end of September. Based on these achievements, Hong was appointed as the first CEO of Toss Bank in June of the same year. At age 39, Hong earned the title of the youngest bank president in the financial sector. His leadership, which was over a decade younger than existing financial industry figures, garnered attention alongside the corporate culture of Toss, which tends to appoint leaders based on practical competence.
Capability
During his time at Toss, CPO Hong was one of the key figures who built the ‘Toss myth.’ With an engineering background and extensive experience in both IT and finance, he was the type of convergent talent most sought after by the banking industry undergoing digital transformation. For instance, in the area of remittance services, he performed a role that encompassed everything from bank partnership sales to user experience, rather than just focusing on simple technology.
Toss Bank, a latecomer among the three internet banks, is credited with successfully establishing its unique identity under Hong’s leadership through distinctive products like the ‘2% annual interest demand deposit account’ and ‘wealth management.’ The ‘Time Deposit with Upfront Interest,’ launched in 2023 as the first of its kind among internet banks, is known to have been planned by Hong himself. Since users could withdraw interest on the day of signup to reinvest, it was well-received by consumers, actually surpassing 200,000 cumulative accounts, 4 trillion won in deposits, and 63 billion won in total interest within 170 days of launch.
Toss Bank succeeded in its first monthly profit conversion 21 months after launch and recorded its first annual profit in its 2024 results. This is a positive achievement considering that Kakao Bank and K-Bank achieved profitability in 1 year and 8 months, and 4 years, respectively.
Critical
This KakaoTalk revamp, pursued under the name ‘Big Bang Project,’ is the first project led by CPO Hong since joining Kakao. After completing his term and leaving Toss in March of last year—having built the foundation and achieved profitability as the Toss Bank preparation CEO—he was recruited by Kakao as a C-level executive. Along with this, Kakao carried out an organizational restructuring to strengthen core business capabilities and AI operations. The plan was to integrate core businesses linked to KakaoTalk under the CPO organization and reorganize AI service and development divisions into a single entity called ‘Kanana.’
However, this update triggered strong backlash from users, with critics calling it an excessive attempt at social media transformation that muddies the essence of a messenger. Kakao's stock price, which had been around 63,000 won, fell more than 6% after the update, briefly dipping below the 60,000 won mark, before partially recovering to close at 60,300 won on the 29th.
It has been pointed out that the usability and trust built as the nation’s messenger app have been shaken due to a combination of a complex interface, automatic application of changes, exposure of unwanted information, addition of unnecessary features, and controversies over advertising and monetization. Internally, criticism is also mounting that CPO Hong forcefully transplanted the Toss-style organizational culture and pushed ahead with the update without sufficiently reflecting the opinions of working-level staff, including developers, through unilateral decision-making.
Challenges
While working as a PO at Toss, CPO Hong once said in an interview for an in-house content platform: “It is absolutely not the case that a PO makes all decisions within a silo (department). To achieve goals, user experience must also be essentially considered.” He added, “My role is to define the problems we need to solve and create a forum for discussion where team members can make the best decisions in their respective areas of expertise.”
It is evaluated that CPO Hong’s challenges in leading an even larger organization and a national app are closely tied to the need for a decision-making structure that prioritizes user experience and the strengthening of practical internal communication. In a press release on the 29th, Kakao announced that it would restore the heavily criticized ‘Friends Tab’ to its original friend list format within the fourth quarter of this year. The current feed-style posts will be moved to a separate ‘News’ menu.
A Kakao official stated, “In addition to improving the Friends Tab, we are continuously working on various UX and UI improvements,” adding, “We will actively listen to and reflect on diverse feedback moving forward.”