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[Press Release] Daum Kakao Reports Fiscal Year and 4Q 2014 Results Fourth quarter revenue totaled KRW 254 billion with operating profit ofKRW 65.7 billion in Daum Kakao’s first earnings release[Seoul, South Korea – February 12, 2015] Daum Kakao Corp. today reported fiscal year and fourth quarter financial results under Korean-IFRS, the first to reflect the merged company’s consolidated earnings,. Daum Kakao’s consolidated revenue for the quarter was KRW 254 billion, and KRW 898.4 billion for the fiscal year 2014. With mobile services comprising of 53% and 49% of the revenue, respectively, the company continued to strengthen its position as the leading mobile lifestyle platform provider in Korea. KRW 254 billion revenue and KRW 65.7 billion operating profit for 4Q 2014 Daum Kakao’s fourth quarter revenue of KRW 254 billion represents an increase of 21% YoY and 15% QoQ. The largest growth was in the commerce platform. Seasonal factors and an increased product lineup in KakaoTalk Gift Store attributed to a robust revenue growth of 171% YoY. Strong performance from advertising platforms including KakaoStory and Ad@m lead to revenue growth of 15% YoY. KakaoGame’s budding average revenue per user (ARPU) lead to 17% YoY increase in game platform revenue. Revenue from “Others”, powered by growth in mobile content platforms such as Daum Webtoon, KakaoPage, KakaoMusic and others, increased 119% YoY.Fourth quarter operating profit increased 71% YoY to KRW 65.7 billion and net profit increased 36% YoY to KRW 50.6 billion.KRW 898.4 billion revenue and KRW 209.2 billion operating profit for fiscal year 2014 For the fiscal year 2014, Daum Kakao’s revenue grew 21% YoY to KRW 898.4 billion. 49% was courtesy of mobile services, with noticeable revenue growth throughout its various platforms, including commerce, advertising and game, contributing to the figure. Operating profit increased 42% YoY to KRW 209.2 billion and net profit increased 10% YoY to KRW 140.3 billion.Strengthening competitiveness in various platforms, including O2O, communication, search and game, to be the focus for 2015Since launching last October, Daum Kakao has developed a number of new business platforms while enhancing its core services. Daum Kakao added interest-based communication services with the launch of Zap, an image-based social media app, and the acquisition of Kid’s Note, a tool for parents to monitor young children’s school activities. The company’s financial services also showed noticeable growth. Mobile payment service KakaoPay currently has three million subscribers and is expected to be adopted by more than 60 retailers. BankWalletKakao, a mobile banking application created in partnership with 16 domestic banks, was released last November and Daum Kakao is planning to grow the user base through various marketing promotions. Eyeing a first quarter launch, KakaoTaxi is in the process of registering drivers for its service, and a revamped mobile search service is in consideration. Recently established Daum Kakao China is expected publish its first title in China during the first half of 2015. Sae-Hoon Choi, co-CEO of Daum Kakao, said, “Since the merger, we have made a number of exciting attempts to ‘Connect Everything’. Various services introduced in 2015 will continue to reflect that vision and will be keystones in the mobile lifestyle platform that Daum Kakao is striving for.” [END] 2015.02.12
[Press Release] Daum Kakao Releases Transparency Report Daum Kakao Releases Transparency ReportDaum Kakao to set industry standards in promoting transparency for user information requests[Seoul, South Korea - January 23, 2015] Daum Kakao (co-CEOs Saehoon Choi and Sirgoo Lee) today revealed its first transparency report through its corporate website (http://privacy.daumkakao.com). Daum Kakao reemphasized its philosophy of placing protection of users’ information as its number one priority, and disclosed data regarding user information requests. Daum Kakao also plans to further its efforts to protect user privacy by regularly updating data in the transparency report and by actively engaging in social discussions for privacy protection.“It is very significant that a company took the initiative to share its data on user information requests from the government and disclosed its various efforts on privacy protection in addition to its philosophy on privacy,” said Tai-Myoung Chung, the Chairperson for Daum Kakao’s Privacy Policy Advisory Committee. He continued, “We hope this transparency report will help foster an online culture where the user’s right to know and privacy are properly protected.”“A transparency report is a fundamental yet crucial part in a corporation’s efforts to protect user privacy,” said Sirgoo Lee, co-CEO of Daum Kakao. “In addition to developing innovative and convenient services, everyone at Daum Kakao will make all efforts to protect user information and minimize privacy violations,” he added.Daum Kakao’s transparency report disclosed the number of requests from government agencies and subsequent compliances regarding information about its users starting from 2012 on a half-year basis. In addition, the company also disclosed the number of requests for protection of users rights including copyright, trademark and likeness infringements, defamation, and requests for removal of personal information. Such information, resulting from personal rights issues or government requests for removal, has also been viewed as being in need for transparent disclosure.The transparency report is composed of five sections; Philosophy, Transparency, Our Privacy Protection Efforts, Recent News and Trends, and FAQ.In the Philosophy section, Daum Kakao introduces its service operation principles, message from the Chief Privacy Officer and the organization chart. Sirgoo Lee, the co-CEO of Daum Kakao, also serves as the Chief Privacy Officer. The organization also includes a task force dedicated to privacy issues along with a Privacy Policy Advisory Committee composed of outside experts ensures immediate and comprehensive response to key privacy issues. Special departments composed of technical and policy experts are also in place. All discussions and decisions are held and made through the Personal Information Protection Committee, which holds the highest decision-making power regarding privacy issues.The Transparency section illustrates the lifecycle of user information in a concise and easy-to-understand manner. The infographic details each stage, including the collection process, how the information is used, whom it is provided to and how it is discarded. The section also provides a link to Daum Kakao’s Privacy Policy. In addition, data pertaining to requests from government agencies for user information along with requests from users and government agencies for protection of user rights are disclosed through this sectionIncluded in the Our Privacy Protection Efforts section are Daum Kakao’s efforts to strengthen user privacy including KakaoTalk Secret Chat mode, privacy impact assessment, infringement prevention activities, strict external and internal access restrictions and 24-hour security measures. In addition, the section includes an overview of the Privacy Policy Advisory Commission and Daum Kakao’s security certifications from renowned outside organizations.The Recent News and Trends section details the latest media coverage and policy changes regarding user privacy protection and will serve as a resource in future dialogues. Lastly, the FAQ section answers key questions users may have regarding Daum Kakao’s privacy protection policies and Transparency Report. Following the publication of its first Transparency Report, Daum Kakao plans to strengthen the report by integrating user feedback and a wide range of public opinion.<Appendix 1 – Government requests for user information>Communications Data Service Provider Category 2012 2013 2014 1H 2H 1H 2H 1H 2H Daum Requested 8,178 6,265 411 236 139 93 Processed 5,869 3,975 0 0 0 0 Accounts 26,269 41,030 0 0 0 0 Kakao Requested 247 544 262 374 344 287 Processed 136 249 1 0 0 0 Accounts 248 783 17 0 0 0 Total requests processed by telecommunication companies 395,061 425,739 465,304 479,623 492,502 Total accounts processed by telecommunication companies 3,856,357 4,023,231 4,827,616 4,747,043 6,024,935 Communication Confirmation Data Service Provider Category 2012 2013 2014 1H 2H 1H 2H 1H 2H Daum Requested 2,064 2,166 1,767 1,903 1,817 1,681 Processed 911 953 597 739 772 751 Accounts 1,210 1,180 948 1,280 1,825 1,387 Kakao Requested 154 380 630 793 1,044 783 Processed 129 337 528 586 801 614 Accounts 6,664 445 702 733 1,362 826 Total requests processed by telecommunication companies 119,306 120,002 133,789 132,070 132,031 Total accounts processed by telecommunication companies 12,637,507 12,765,110 9,380,125 6,734,543 6,143,984 Communication-restricting Measures Service Provider Category 2012 2013 2014 1H 2H 1H 2H 1H 2H Daum Requested 30 26 23 46 28 19 Processed 29 24 22 46 28 19 Accounts 190 134 120 152 125 112 Kakao Requested 15 26 36 50 61 20 Processed 15 26 33 48 57 21 Accounts 17 30 37 52 83 34 Total requests processed by telecommunication companies 267 180 255 337 378 Total accounts processed by telecommunication companies 3,851 2,236 3,540 2,492 3,995 Search and Seizure Warrants Service Provider Category 2012 2013 2014 1H 2H 1H 2H 1H 2H Daum Requested 513 850 2,170 2,612 2,595 2,177 Processed 498 786 1,771 2,367 2,262 2,136 Accounts 101,779 23,178 108,273 308,444 220,223 131,654 Kakao Requested 273 538 983 1,693 2,131 1,733 Processed 231 473 816 1,407 1,651 1,348 Total issued by courts 107,499 166,877 <Appendix 2 – User Rights Protection>Users and Rights Holders Service Provider Classification Category 2012 2013 2014 1H 2H 1H 2H 1H 2H Daum Copyright Reported 90,394 91,812 162,994 188,638 234,554 174,280 Processed 80,272 82,035 149,002 171,779 213,060 159,266 Copyright (3rd Party) Reported 25,736 58,756 37,903 101,599 59,576 68,199 Processed 24,966 55,470 35,307 89,781 53,766 64,094 Trademark Reported 76 226 497 1,491 1,265 195 Processed 73 173 436 1,179 1,203 190 Likeness Reported 2,000 2,585 3,296 4,724 2,233 2,095 Processed 1,871 2,235 2,956 3,701 1,940 1,900 Personal Information Reported 1,697 1,678 1,812 1,534 951 1,228 Processed 1,538 1,564 1,517 1,376 849 1,151 Defamation Reported 40,368 36,419 41,628 56,886 67,695 61,000 Processed 35,389 31,958 37,048 51,550 61,613 54,648 Kakao Copyright/ Trademark Reported 0 0 0 3 15 26 Processed 0 0 0 1 8 15 Copyright (3rd Party) Reported 0 0 0 0 2 4 Processed 0 0 0 0 2 4 Defamation Reported 0 8 13 32 66 55 Processed 0 2 3 11 34 22 Government Requests Service Provider Classification Category 2012 2013 2014 1H 2H 1H 2H 1H 2H Daum Korea Communications Standards Commission Correction Requested 1,149 2,519 3,121 3,965 4,552 4,114 Processed 1,148 2,518 3,119 3,956 4,548 4,112 Self-regulation Notice 679 1,354 4,101 16,709 14,614 12,746 Processed 673 1,344 4,101 16,708 14,613 11,574 Ministry of Food and Drug Safety Requested 308 466 681 499 660 511 Processed 307 465 680 499 657 499 Korea Internet and Security Agency Requested 15,942 25,181 7,859 3,116 1,942 1,943 Processed 15,907 25,157 7,849 3,092 1,915 1,916 National Police Agency Requested 584 96 87 70 187 52 Processed 561 42 5 30 28 1 Military Manpower Administration Requested 65 51 58 76 102 98 Processed 62 40 55 74 101 87 Kakao National Police Agency Requested 0 0 0 1 1 0 Processed 0 0 0 1 1 0 2015.01.30

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