A consortium led by Autonomous a2z, a local mobility start-up, began a pilot test of a self-driving ride service on streets in Daegu, Tuesday.
Kakao said on Wednesday that it will raise 10 billion won ($7.2 million) over the next five years to support taxi drivers and chauffeurs.
Kakao Mobility will conduct a test run on its late-night taxi service on Fridays and Saturdays, according to industry sources Thursday.
Kakao Mobility is expanding its ride-hailing business into Europe, the transportation company said Wednesday.
Kakao called off its plan to sell a stake in Kakao Mobility, after facing strong opposition from employees.
Electric bikes are seeing new popularity as the demand for electric scooters falls due to tightened regulations in the country.
Ryu Gung-seon, CEO of Kakao Mobility, said in an internal notice on Monday that he "asked for a halt to discussions of a stock sale deal," according to the company's union.
Kakao, which holds a 57.5 percent share of Kakao Mobility, held an online conference with the mobility company’s employees on Monday to discuss the possible sale of the company's shares to a private equity firm.
LG Electronics and Kakao Mobility signed a memorandum of understanding last Friday to develop transportation services related to advanced mobility technologies.
A union is opposing the possible sale of a large stake in Kakao Mobility to a private equity group, throwing another roadblock in the way of the parent company's efforts to unload shares in its subsidiary.