Government to investigate if Kakao has monopolized market

President Yoon Suk-yeol answers questions from reporters as he enters the presidential office in Yongsan, central Seoul, Monday morning. [JOINT PRESS CORPS]

The government will look into whether Kakao has monopolized the market and take necessary measures accordingly, President Yoon Suk-yeol told local reporters on Monday morning.

"If the market has been distorted due to monopoly and [the company's service] has become a nation-wide infrastructure, then the state must take necessary measures for the good of the people," Yoon said while entering the presidential office in Yongsan, central Seoul.

"I am told that the Fair Trade Commission is reviewing such matters."

He added that he "respects the rules of a free market that guarantees a company's freedom and creativity," but that is "only while the market runs on a reasonable and fair system."

"The majority of people, who use Kakao [services], would have suffered inconveniences due to the service freeze over the weekend," Yoon said. "It is a network run by a private company but it's virtually the same as a state-run network in the eyes of the people."

The government will work with the National Assembly to minimize further damage for users, according to Yoon.

All Kakao services crashed after a fire broke out at SK C&C in Pangyo after 3 p.m. Saturday, which houses Kakao’s data center.

Some Naver services were affected as well but not as extensively as Kakao.

BY YOON SO-YEON [yoon.soyeon@joongang.co.kr]