AXZ, the operator of the portal Daum, has initiated a management change just over a week after acquiring Upstage.
On May 18, sources in the information technology (IT) industry reported that Upstage has appointed Lee Geon-soo, head of its AI search division, as the new CEO of AXZ. Lee was recruited from Connectwave in April.
Lee, a graduate of Seoul National University, is recognized as an expert with a strong understanding of platform operations. He became an executive at Naver in 2014 and oversaw the Naver Place business and the Naver Glace (CIC, Global Place independent corporate entity) 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 AXZ's CEO since May 2023, when Kakao launched Daum's business division as an independent corporate entity (CIC). Following the confirmation of Upstage's acquisition of Daum, he reportedly expressed his intention to resign.
After acquiring AXZ, Upstage plans to transform Daum into an AI search portal. The goal is to enhance existing portal search services into generative AI-based search services by leveraging Daum's extensive data and traffic accumulated over the years, utilizing its LLM, Solar. The IT industry anticipates that the management change at AXZ may lead to further organizational restructuring.
An Upstage representative stated that Lee's appointment is not yet finalized and that there are no established plans regarding the reallocation of personnel 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 sale of AXZ.
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, has 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 has moved forward with a sale just months later, which is a unilateral restructuring aimed at workforce reduction and financial metrics adjustment." They highlighted that the repeated spin-offs and sales pose significant risks that undermine the core value of Kakao as a company.
* This article has been translated by AI.
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