Kakao faces growing regulatory risks as political scrutiny rises

FILE PHOTO: The Kakao messaging application and the Kakao T taxi booking application are seen on a mobile phone in this illustration photo March 13, 2018. REUTERS/Thomas White/Illustration/File Photo

SEOUL (Reuters) - South Korean tech giant Kakao faces growing regulatory heat after the country's president urged a review into its taxi app amid complaints about monopolistic practices, which comes on the heels of a probe into suspected stock market manipulation.

Shares in Kakao Corp, which operates Korea's dominant chat app KakaoTalk and has expanded into digital banking, taxi services and entertainment, have dropped 27% over the past three months, undershooting a 10.5% fall in the broader market and reflecting growing regulatory concerns.