[Alpha Biz= Paul Lee] AXZ, the operator of portal service Daum, is facing internal unrest ahead of its transition to AI startup Upstage, following its separation from Kakao. The company is preparing for a new phase as an “AI portal,” but uncertainty is growing after CEO Yang Juil decided to step down at the end of this month.
According to industry sources on May 14, Yang is set to leave the company later this month, adding to concerns among employees already unsettled by the ownership transition.
AXZ was established after Kakao spun off its Daum portal business into a separate entity. Kakao had previously reorganized the division into a Company-in-Company (CIC) structure in 2023 before fully separating it into an independent corporation roughly two years later.
At the time, Yang—then head of Kakao’s KakaoTalk division—was appointed CEO of AXZ to strengthen content competitiveness, including short-form offerings. He previously held leadership roles at companies such as NHN Ticketlink, NHN Bugs, and Kakao’s blockchain affiliate Ground X.
Yang had emphasized an independent growth strategy, stating at the time of the spin-off that a faster and more flexible decision-making structure would help drive Daum’s revival.
However, Kakao recently agreed to transfer its entire stake in AXZ to Upstage, marking another major shift for the Daum business. Upstage plans to combine its proprietary large language model (LLM), “Solar,” with Daum’s search technology to transform the platform into an AI-driven portal.
The two companies signed a memorandum of understanding (MOU) in January through a share swap arrangement, and on May 7 finalized a definitive agreement under which Upstage will acquire a 100% stake in AXZ from Kakao. In return, Kakao will receive a stake in Upstage.
The overlapping developments of the sale and the CEO’s resignation have triggered internal backlash. The Kakao branch of the Korean Chemical Textile Food Workers Union issued a statement criticizing management for failing to uphold its commitment to independent growth and called for measures to ensure job security and greater transparency in the sale process.
The union also expressed regret over Yang’s decision to step down, arguing that management should take responsibility after presenting a long-term growth vision to employees at the time of the spin-off.
Within Kakao, concerns are also mounting that the AXZ divestment could extend beyond a simple business restructuring, potentially affecting job stability and organizational trust.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
https://www.alphabiz.co.kr/news/view/1065615683307715
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.
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