Kakao Mobility kicks off physical AI… Why did the coexistence foundation drop 'Kakao' from its name?

The Kakao Mobility Coexistence Foundation has removed 'Kakao' from its name. The move is intended to shed the Kakao image, strengthen independence and neutrality, and focus on future mobility businesses. Existing support programs will be maintained.

According to Kakao Mobility and others on the 3rd, the corporate name of the Kakao Mobility Coexistence Foundation was changed to the 'Next Mobility Coexistence Foundation' on the 14th of last month. Additionally, the foundation recently launched research related to autonomous driving in collaboration with the taxi industry.

A source from the Kakao Mobility Coexistence Foundation stated, "We have commissioned several autonomous driving-related research projects to academia and research institutions in collaboration with the taxi industry," adding, "The foundation's name was changed to expand its role through the development of the future mobility industry, which is a 'next' industry, and the creation of a coexistence ecosystem."

In line with the rapidly changing industrial environment involving autonomous driving and physical AI, the foundation aims to expand its role from existing support programs to coexistence projects that can be undertaken together with the taxi industry. The first such project is the autonomous driving research commission issued by the Next Mobility Coexistence Foundation.

Kakao Mobility announced a plan to contribute approximately 20 billion won over three years, alongside its plan to establish the foundation in 2024. The foundation stated, "Kakao Mobility's contribution plan will be fulfilled regardless of the change in the foundation's name."

The change in the foundation's name coincides with the timing when Kakao Mobility is expanding its business scope into a future mobility company based on physical AI. Kakao Mobility has been accelerating the cultivation of new businesses, including establishing a physical AI division early this year and recruiting Vice President Kim Jin-gyu, formerly of Google Waymo, as head of the division.

However, a source from the foundation stated, "The Next Mobility Coexistence Foundation is operated autonomously based on decisions made by its independent board of directors," drawing a line by adding, "Kakao Mobility's medium- to long-term business strategy and the change in the foundation's name are unrelated." Currently, among the five members of the foundation's board of directors, four are external personnel, including Lee (President). The only representative from Kakao Mobility is Ryu Kyung-sun, Kakao Mo Bil-ri-ti (CEO).

Interpretations also suggest that the foundation is strengthening its independence due to the potential for conflicts of interest with the taxi industry. After resolving conflicts with the taxi industry that had continued since 2023 by formulating a coexistence plan, Kakao Mobility announced its plan to establish the foundation in February of the following year. Although tensions have eased through the implementation of the coexistence plan and institutional improvements, there is a possibility that conflicts could resurface over concerns such as decreased work volume if autonomous taxis spread. It is argued that the foundation changed its name in advance to dilute the Kakao color.

The foundation also maintains that there is no change in its existing role. A source from the foundation explained, "It is merely a change of name in the articles of incorporation; the original purpose of promoting the healthy development of the mobility industry and creating a coexistence ecosystem to enhance public transportation convenience remains unchanged," adding, "We will continue activities that align with this purpose going forward."

Meanwhile, Kakao Mobility is participating in the 'Autonomous Taxi Social Consultation Body' launched by the Ministry of Land, Infrastructure and Transport last January. The consultation body, composed of 12 organizations and individuals including four taxi-related groups, Uber, the Autonomous Driving Industry Association, and the Korea Transportation Safety Authority, discusses institutional improvement measures regarding the introduction of autonomous taxis.