이 기사는 2021년 10월 07일 07시58분 thebell에 표출된 기사입니다

South Korea’s Kakao Corp is considering exiting some of its businesses after criticism that the platform giant’s rapid expansion across industries threatens small business owners, a move that could take a toll on financial investors in business arms under the company’s wing.

Kakao has been updating lawmakers on an exit plan from some of its businesses subject to controversy, according to sources. Among them are Wyatt, the company’s hair salon reservation service, and Kakao VX, which operates indoor screen golf services.

“Kakao has submitted updates on its exit plan but nothing has been finalized yet,” a National Assembly source said.

Wyatt, founded in 1992, came under Kakao’s wing after Kakao Investment acquired a majority stake in the company in 2015. The following year it launched hair salon reservation service, Kakao Hairshop, with its users increasing to more than five million in the past five years.

Wyatt raised roughly 36 billion won ($30 million) in a funding round earlier this year to support its expansion into other part of the beauty industry such as nail salons and cosmetic surgery. Its investors included Korea Investment Partners, Industrial Bank of Korea, Brave New Investment, Brain Asset Management and Kiwoom Securities. Kakao’s exit from the business would put on hold the company’s expansion plan.

Kakao VX has also been mentioned as one of the businesses that Kakao may exit. Friends Screen, operated by Kakao VX, has about 1,200 virtual-reality golf studios across the country, with users of its golf reservation app growing to approximately 850,000.

Kakao VX earlier this year raised a large amount of money at a valuation of 500 billion won. The funding round was led by Singapore-based One Asia Investment Partners, which invested 100 billion won. Seoul-based Stonebridge Capital also invested 20 billion won in the company. In 2019, Kakao VX raised 20 billion won from Q Capital Partners.

Kakao’s potential exit from the screen golf business has increased the uncertainty of Kakao VX’s future. Even if Kakao remains in the business, an aggressive expansion of the business is unlikely.

Kakao and its affiliates have been under increased scrutiny from politicians and regulators for the past weeks as concerns are growing about the reckless expansion of the tech giant and its dominance in some markets such as mobility. (Reporting by Se-hun Jo)