November 30, 2023


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South Korea’s Kakao plunges after outage, calls for monopoly probe

South Korea's Kakao plunges after outage, calls for monopoly probe

KakaoTalk and other products and services of Kakao Corp. faced a key outage after a hearth broke out at a details center in the outskirts of the country’s capital, Seoul (Image Illustration by Thiago Prudencio/SOPA Visuals/LightRocket by means of Getty Images)

Sopa Photographs | Lightrocket | Getty Visuals

Shares of South Korea’s top rated messaging application plunged Monday just after a big knowledge heart outage in excess of the weekend disrupted support for more than 53 million users around the globe.

The outage was brought on by a hearth at the details centre, which also hosts servers for other major Korean tech companies. KakaoTalk is not only South Korea’s top rated messaging app, it is also greatly relied on for every thing ranging from on the web payments, gaming and trip hailing as very well as log-in verification for other significant sites.

Kakao claimed 47.5 million month-to-month energetic people in Korea throughout the 2nd quarter. Which is more than 90% South Korea’s inhabitants of 51.74 million men and women, as of Nov. 1, 2021.

South Korean President Yoon Suk-yeol described the influence of Kakao’s outage as “no distinctive from the nationwide communication community.” He known as on suitable ministries to examine the exact lead to and scope of the disruptions and drum up plans to avert very similar incidents.

“If there is a monopoly or an oligopoly scenario exactly where it manipulates the industry, we will need to get systemic measures from a nationwide amount for the fascination of the men and women,” Yoon said Monday.

On Monday, shares of Kakao Corp. plunged far more than 9% at the open up, even though net large Naver drop 2% in the early morning session before paring losses. Naver also briefly faced restricted disruptions as the details center also hosts servers for the organization, but resumed most of its operations on Sunday.

South Korea's Kakao and Naver shares fall after fire disrupts services

The information center’s operator, SK Inc, also fell extra than 4% at the open. Kakao’s subsidiaries Kakao Spend, Kakao Bank and Kakao Online games all plunged extra than 7% in Korea’s morning session.

Kakao at first announced assistance disruptions Saturday afternoon, which ongoing into Sunday morning.

“We bow our heads and sincerely apologize to all customers who are going through Kakao services disruptions at the second,” the firm’s co-CEOs explained in a statement about the weekend.

“We guarantee to consider the optimum measures to protect against difficulties like these from recurring as perfectly as investigating the trigger of this incident,” they reported, adding that the organization has been performing to back up facts to other amenities within the country as before long as the hearth broke out.

“This is a uncommon circumstance of a person facts middle getting completely influenced, so it’s getting a ton longer than predicted to implement these [back up] measures,” they mentioned.

In a Monday early morning tweet, Kakao stated some solutions have resumed, but end users continued to report difficulties.