Kakao Entertainment, the tech giant from South Korea, announced on Tuesday that it will be closing the Korean branch of Tapas Entertainment, its U.S.-headquartered storytelling platform. This restructuring effort is part of Kakao’s goal to make more efficient use of its resources. The closure of Tapas Korea will unfortunately mean that 20 employees will be affected by this decision. The duties previously handled by Tapas Korea are expected to be taken over by Kakao Entertainment due to their greater experience and capabilities in the industry.
It has been clarified that this decision has nothing to do with Silicon Valley Bank’s recent failure or any ongoing acquisition deal talks between Kakao and SM Entertainment, a K-pop agency. In May 2022, Tapas and Radish Media were merged into the rebranded company known as Tapas Entertainment after Kakao raised over $966 million earlier this year for further international expansion and acquisitions. This merger was seen as an essential part of Kakao’s strategy towards achieving a global presence in the media industry, unifying two powerful platforms under one umbrella organization.
Tapas Entertainment CEO Ban-hyuk Han spoke about the closure in a statement released on Tuesday morning: “We want to thank those who have worked at our Korean branch for their dedicated service over the years. While this difficult decision was necessary to ensure our long term sustainability, we understand how it may impact our staff members adversely.” At present, many industries across the globe have been severely impacted by the pandemic. Companies have had to make serious budgetary cuts and implement various measures in order to remain financially stable while also looking out for employee welfare during these times of crisis.
Kakao is confident that its restructuring efforts will help it remain competitive in such an unpredictable market environment and continue providing users with exceptional services for many years to come. Kakao also pledged that it would do its best to provide assistance and support for those affected by the closure of Tapas Korea. We wish them all the best as they embark on their next adventures.
The closure of Tapas Korea is expected to take effect from June 2022 onwards. The tech giant has already begun informing employees about the impending closure. Kakao is committed to ensuring that the news of this restructuring decision is communicated widely and promptly so as to minimize disruption for those affected. The company has also promised to assist employees in finding new opportunities within its organization or outside, depending on their preferences
