Fair-trade compliance culture takes root after CP launch

Compliance metrics to be added to leader evaluations in second half

Kakao CEO Jeong Shin-a. [Kakao]
Kakao CEO Jeong Shin-a. [Kakao]

Kakao marked the second anniversary of its fair-trade compliance program, known as CP, sharing the results and direction of its operations over the past two years. The company said it plans to strengthen the program with a focus on employee participation and practical application.

On Thursday, Kakao shared the CP's operational results company-wide. CEO Jeong Shin-a said in an internal notice that "over the past two years, Kakao has reorganized its fair-trade regulations and policies and built a system to manage risks that may arise in the course of business," adding that the company would "regularly review the CP's operational status and results, and make improvements so that the necessary systems and support work effectively on the ground."

Kakao introduced the CP in August 2024. Since then, it has reorganized related regulations and operational frameworks and established a risk assessment system, laying the groundwork for voluntary fair-trade compliance.

In June, the company added a fair-trade page to its sustainability management website and published a fair-trade practice declaration. Starting in the second half of this year, it also incorporated compliance items into leader evaluations — including advance review of legal risks in carrying out duties and adherence to relevant laws and internal policies. The company said the move strengthens its framework for identifying and managing legal risks tied to organizational operations before they arise.

Kakao headquarters. [Yonhap]
Kakao headquarters. [Yonhap]

In addition, Kakao produced and distributed a compliance handbook to help employees understand fair-trade principles in their day-to-day work. The company has also continued to run department-specific training sessions and newsletters. This year, it held seven in-person training sessions beyond its existing online education, covering topics such as consent orders, unfair internal transactions and the Subcontracting Act.

In the second half of the year, Kakao plans to run various participation events under "LET'S CP," an internal brand created through a company-wide contest. Alongside this, it will continue operating the "Kakao Compliance Awards," which recognizes outstanding teams and employees, to encourage voluntary participation.

Jang Young-shin, Kakao's compliance operations performance leader, said the company plans "to advance the CP framework in the second half so that a voluntary compliance culture can take root naturally in day-to-day work," and that it would "leverage Kakao's strengths as an IT company to improve the usability and accessibility of the compliance handbook."


chami@heraldcorp.com