AXZ, the operator of the portal Daum, has initiated a management change just over a week after acquiring Upstage. Yang Joo-il, the current CEO of AXZ, is set to leave the company at the end of this month, with Lee Geon-soo, the head of Upstage's AI search division, reportedly appointed as his successor.
According to sources in the information technology (IT) industry on May 18, Upstage has designated Lee Geon-soo as the new CEO of AXZ. Lee was recruited by Upstage in April from his previous role as CEO of Connectwave.
Lee is known as an expert with a strong understanding of platform sectors, having graduated from Seoul National University with a degree in business administration. He became an executive at Naver in 2014 and oversaw the Naver Place business and the Naver Glace (CIC, Global Place) organization until 2023.
During his tenure at Connectwave, Lee was involved in a large-scale private language model (LLM) development project with Upstage. He is expected to play a key role in linking Upstage's LLM, 'Solar,' with Daum's AI search portal.
Yang Joo-il has served as CEO of AXZ since May 2023, when Kakao launched the Daum business unit as a corporate independent company (CIC). He reportedly expressed his intention to resign following the confirmation of Upstage's acquisition of Daum.
Upstage plans to transform Daum into an AI search portal following the acquisition. The goal is to enhance the existing portal search into a generative AI-based search service, utilizing Daum's long-accumulated data and traffic from news, cafes, and searches, based on its LLM, Solar. The IT industry anticipates that the management change at AXZ may lead to further organizational restructuring.
Kakao reportedly checked with AXZ employees last December regarding their willingness to return to Kakao or remain at AXZ. Industry insiders believe that the likelihood of AXZ personnel moving back to Kakao is low.
Upstage stated that Lee's appointment as CEO is not yet finalized and that there are no decisions made regarding the personnel reallocation within Daum's organization, which is primarily composed of Upstage employees.
Meanwhile, the Kakao branch of the National Chemical Fiber Food Industry Labor Union has expressed opposition to Yang Joo-il's resignation in connection with the AXZ sale.
In an official statement on May 14, the union criticized Yang, stating, "Yang Joo-il, who encouraged employees by saying, 'We are setting sail into a vast ocean' at the time of the spin-off, decided to resign immediately after the sale through a share exchange with Upstage was confirmed, which is a deceptive exit."
The union also criticized Kakao CEO Jeong Shin-ah, saying, "Despite assuring employees that 'we will not consider a sale' during the spin-off, the company moved forward with a sale just months later, which is a unilateral restructuring aimed at meeting financial metrics and removing personnel." They highlighted that the repeated spin-offs and sales, along with the management's 'exit' actions, pose significant risks to the value of Kakao as a company.
The union has also raised concerns that the AXZ sale could lead to internal restructuring at AXZ, stating, "Given that there have been many cases of restructuring following sales in the past, we are worried that this could lead to job insecurity once again."
* This article has been translated by AI.
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