이 기사는 2021년 06월 10일 07:35 thebell 에 표출된 기사입니다.

Kakao has hired a former prosecutor for a position managing environmental, social and governance (ESG) matters, as the South Korean tech giant is becoming increasingly vulnerable to reputational risk.

The former public official recently passed the examination of the country’s Public Service Ethics Committee and will join the company in July, according to industry sources. “The title of the position is likely to be finalized closer to the joining date,” a Kakao representative said.

The hiring comes after the tech giant faced several compliance challenges. Its online map service, Kakao Map, was hit by user data leakage earlier this year. The company has also been at the center of a controversy after alleged violations of the country’s labor law.

These issues, which can cause reputational damage, have highlighted the increasing need for managing risks associated with compliance and ESG matters, industry watchers said.

In an effort to enhance ESG integration across the company, Kakao established an ESG committee within its board of directors in January. The company’s task force dedicated to ESG is responsible for reporting ESG-related issues and risk analysis results to the committee. The new employee is expected to hold a senior role in the task force.

Other legal experts recruited by Kakao include Kang Seong, vice president of Kakao Enterprise. He previously worked as a lawyer at Kim & Chang and served as representative partner at law firm Jisung Horizon. Kang was known for providing legal advice on several big deals including the Hyundai Card stake sale and the sale of Hyundai C&F.

Kakao’s compliance officer, Jeong Tae-seong, is also a former lawyer who joined the company from law firm Shin & Kim. He is responsible for audits and inspections of Kakao’s 15 affiliates, as well as compliance management. (Reporting by Choong-hee Won)