Undoubtedly the most unexpected news of the year… South Korean transport giant Kakao Mobility Corp. has announced plans to acquire FREENOW. A bold acquisition of one of Europe’s leading multimodal platforms, positioning Kakao in competition with global heavyweights such as Uber, OIa Cabs and Gett… We take a closer look at the details of this extraordinary purchase, with a bid estimated at several billion won…
More than $153 million…
As mentioned in the introduction, Kakao Mobility, South Korea’s leading cab service provider, has just acquired FreeNow. Backed by the BMW Group and Daimler AG, FREENOW is now one of Europe’s leading transport service providers. With a planned offer of 200 billion won for an 80% stake, this initiative aims to strengthen Kakao’s presence in the global market. However, legal challenges linked to the recent indictments of Kakao Mobility executives. The reason: Stock market manipulation could complicate the finalization of the transaction.
Kakao in South Korea’s crosshairs
In fact, a few weeks ago, the South Korean technology giant was faced with a number of complaints alleging monopolistic practices. These accusations followed an investigation ordered by the President of South Korea, Yoon Suk-yeol. To date, Kakao Mobility holds over 90% of the South Korean cab market. A position which makes them market leaders, and which some see as an abuse of power…
In the sense that they’ve attracted drivers and then raised prices, it’s very immoral, and the government should take action.
Yoon Suk-yeol, President of South Korea
An abuse of power that was subsequently aggravated by the arrest last month of one of its executives. He was accused of alleged stock market manipulation by K-Pop agency SM Entertainment. According to legal experts, if a court finds that “Kakao Corp has committed wrongdoing, the group could be forced to divest part of its 27.2% stake in online bank KakaoBank”…
