Kakao Explained

Kakao Corporation
Native Name:주식회사 카카오
Native Name Lang:ko
Type:Public
Foundation: (original company; as Kakao Inc.)
(current incarnation)
Founder:Brian Kim
Location:Jeju City, South Korea
Area Served:Worldwide
Key People: (chairman, head of corporate alignment center)[1]
Shina Chung (CEO)
Industry:Internet
Revenue: KRW 7.87 trillion
Operating Income: KRW 460 billion
Net Income: KRW -162 billion
Assets: KRW 25.77 trillion
Num Employees:10,644
Equity: KRW 13.94 trillion
Subsid:Kakao Entertainment
Kakao Games
Kakao Friends
Kakao Mobility

Kakao Corporation is a South Korean internet conglomerate headquartered in Jeju City. It was formed through the merger of Daum Communications and the original Kakao Inc. in 2010. The company was renamed Daum Kakao in 2014.[2] In 2015, it was rebranded once more, reverting simply to Kakao.[3]

The KakaoTalk messaging app dominates in South Korea, and after launching in March 2010, the service gained around 90% of domestic market share in 2015.[4] In January 2016, Kakao acquired a 76.4% stake in LOEN Entertainment, a large South Korean entertainment company, for $1.5 billion;[5] it was later rebranded to Kakao M. The company has gained further prominence through KakaoTalk, a free mobile instant messaging application for smartphones, with text and call features.

Kakao Corp's full suite of apps includes: KakaoTalk, KakaoStory, KakaoTaxi, KakaoAccount, KakaoMap, KakaoDriver, KakaoBus, KakaoMusic, KakaoGroup, KakaoHome, KakaoPlace, KakaoAlbum, KakaoPage, KakaoStyle, and KakaoAgit.[6]

History

2006–2014: Founding of Kakao Corp.

Kakao Corp is the company behind KakaoTalk, which serves as its main platform and flagship application. It was founded in 2006 by Kim Bum-soo, the former CEO of NHN Corporation (the organization that emerged from the Hangame and Naver.com merger) as Kakao Inc.[7] Kakao Corp. (then known as Kakao Inc.) is based in Seoul, South Korea. Manson Yeo and Sean Joh serve as the current co-CEOs.[8]

In August 2013, three of the globally ranked top 10 Android games (according to analytics provider App Annie) were tied into the KakaoTalk platform—Everybody’s Marble, Cookie Run, and Anipang.[9] With 93 percent of South Korea's users on KakaoTalk, the free downloads of the games Ani Pang and Dragon Flight, which can only be played with a Kakao Talk account, were deemed "national" games. To maintain simplicity across all the provided services, Kakao applications can be purchased and logged in with links to KakaoTalk.[10] Kakao Corp generated revenue of approximately $200M (USD) in 2013 through gaming, digital content, mobile commerce, and its marketing channels for brands and celebrities.[11] Kakao Corp. was named a Top Developer on Google's Android Market, and KakaoTalk was chosen as the number one Free SMS App by Cnet.[12]

According to a December 2013 App Annie report, Kakao was the world's third top publisher by monthly revenue at Google Play. Kakao Corp. was the number one publisher for iOS and Google Play in South Korea, and KakaoTalk was the number one app for iOS and Google Play revenue in South Korea.[13] KakaoTalk was nominated for the Most Innovative Mobile App Award at the Global Mobile Awards 2014.[14]

2014–2015: Merger of Daum and Kakao

On 26 May 2014, Kakao Corp. announced that it had decided to merge with Daum Communications, one of Korea's top Internet portals, through a stock swap market capitalization.[15]

In 2015, the company changed its name to Kakao, restoring its pre-merger name. Due to gambling and censorship issues within the Kakao ecosystem, the organization's board of directors ejected Kim-beom-soo as CEO and decided to replace him with Rim Ji-hoon.[16] [17] [18] Kim Beom-soo became the largest shareholder in the new pro forma company with a 22.2 percent stake.[19]

2016–present: New business model

Kakao was approved by South Korean regulators to become the nation's first internet-only bank in 2017. The internet bank engages in the same business as commercial banks, including processing deposits, loans and wiring money. Consumers no longer need to visit a bank to open a new bank account or to get a loan. Kakao's business plan was considered innovative, and the company's business model was expected to secure sizable customer sign-ups relatively easily from KakaoTalk's users.[20]

Although K Bank eventually became South Korea's first Internet-only bank, having launched several months prior, Kakao Bank immediately attracted more customers; 820,000 within four days of launch on 27 July 2017.[21] The dedicated Kakao Bank app itself was downloaded 1.5 million times within the same period. The bank had 3.5 million customers after a month.[22] These figures trounced the 400,000 users that K-Bank amassed within 100 days of its existence.

By 26 September 2017, Kakao Bank lent ₩1.4 trillion ($1.2 billion), constituting 40 percent of the total loans in all of South Korea for that particular month.[23] The bank's unprecedented expansion is seen as an exception to the closure of banks, particularly foreign-owned institutions. The fledgling performance of these banks is being blamed on the high cost of maintaining brick-and-mortar operations and the popularity of internet finance among Korean consumers.

On 10 March 2015, Daum Kakao launched its KakaoTaxi service, which allows users to call a taxi using the KakaoTaxi application.[24] About 600,000 ride requests were made on the ride-hailing platform every day within eight months of its launch.[25] [26]

In 2017, KakaoTaxi was renamed to Kakao T. The service includes the premium extension Kakao Taxi Black, which allows users to book rides in Seoul via the messenger app, exclusively carried in cars from luxury brands such as Mercedes Benz, Lexus, and BMW. Fares for the premium service started at ₩8,000. Kakao announced plans to expand the offering to other Korean cities within the following year.[27] Kakao announced in April 2019 that they would be launching an e-bike sharing service with an initial fleet of 400 bikes across two major cities.[28]

In 2020, Kakao was expected to see improved performance due to rising demand for social IT infrastructure and internet-based services that could be used easily from home. This included acquiring a major stake as the largest shareholder in KakaoBank and launching advertising on KakaoTalk. As a result, the company recorded its highest-ever first-quarter revenue and operating profit since its founding. On 23 May 2020, its stock reached a 52-week high, and Kakao surpassed Hyundai Motor to become the 10th largest company by market capitalization on the KOSPI.[29]

Products and services

KakaoTalk

KakaoTalk, commonly referred to as KaTalk in South Korea, is an instant messenger and online services platform operated by Kakao Corporation.[30]

Kakao Entertainment

See main article: Kakao Entertainment.

Kakao Entertainment Corp is a South Korean entertainment, mass media, and publishing company founded in 2021.[31]

KakaoStyle

See main article: KakaoStyle.

KakaoStyle is a mobile application that curates and aggregates fashion content, links, stores, and information from various websites. KakaoTalk users are able to discover various fashion trends using the app, and see their friend's interests. The app gives suggestions, and links to purchase clothing and various items.[32]

KakaoPay

See main article: KakaoPay.

Kakao Pay is a mobile payment and digital wallet service by Kakao based in South Korea that allows users to make mobile payments and online transactions. The service supports contactless payments using near-field communications and QR codes.[33]

KakaoBank

See main article: KakaoBank.

KakaoBank Corp. is a South Korean financial institution specializing in mobile banking services and financial technology. It was founded in 2016 through a collaboration between Korea Investment Holdings and Kakao Corp.[34]

Kakao T

See main article: Kakao T.

Kakao T is a Korean transportation service app launched in 2017 by Kakao Mobility Corp., a subsidiary of Kakao. The service provides taxi-hailing, designated driver booking, nearby parking space searching, and real-time traffic information service.[35]

Kakao Games

See main article: Kakao Games.

Kakao Games Corp. is a South Korean video game publisher and a subsidiary of Kakao. It specializes in developing and publishing games on PC, mobile, and VR platforms.[36]

Others

service, finding a nearby beauty salon

Subsidiaries

Investment

See also

Notes and References

  1. Web site: Kakao to build large-scale K-pop performance venue in northern Seoul. Yoo, So-yeon. April 4, 2022. April 12, 2022. Korea JoongAng Daily. 25 December 2022. https://web.archive.org/web/20221225143901/https://koreajoongangdaily.joins.com/2022/04/04/business/tech/Kakao-Seoul-Arena-The-O2/20220404163256017.html. live.
  2. Web site: kakao > About > History . Kakao Corp. . Kakao . 9 October 2015 . https://web.archive.org/web/20151001001748/http://www.kakaocorp.com/en/about/history . 1 October 2015 .
  3. News: 24 September 2015 . Daum Kakao Sets Sail Under New Name . . Seoul . 9 October 2015 . 1 October 2019 . https://web.archive.org/web/20191001004130/http://english.chosun.com/site/data/html_dir/2015/09/24/2015092401705.html . live .
  4. Web site: matthew . 2014-02-03 . KakaoTalk Nominated for Most Innovative Mobile App Award at Global Mobile Awards 2014 . 2024-10-13 . Businesskorea . ko.
  5. News: Kakao acquires Loen. 11 January 2016. The Korea Times. en. 18 September 2017. 30 September 2019. https://web.archive.org/web/20190930080254/http://www.koreatimes.co.kr/www/news/tech/2017/03/133_195188.html. live.
  6. Web site: 21 April 2014 . Kakao Corp Home . live . https://web.archive.org/web/20150908040036/http://www.kakao.com/ . 8 September 2015 . 19 April 2018 . Kakao.
  7. News: 아이위랩, 아이폰용 메신저 '카카오톡' 출시. https://web.archive.org/web/20131003130323/http://www.eto.co.kr/news/outview.asp?Code=20100318145504490&ts=233011. 3 October 2013. Kim. Nam Kyu. 2010-03-18. Economy Today. 1 May 2013.
  8. Web site: Kakao . kakaocorp.com. ko-KR . 19 April 2018. 20 April 2018. https://web.archive.org/web/20180420073754/https://www.kakaocorp.com/ir/managementInformation/boardOfDirectors/configuration. live.
  9. Web site: Why is mobile gaming so popular in South Korea?. ACUÑA. ABEL. 19 October 2013. VentureBeat. 13 November 2016. 18 June 2018. https://web.archive.org/web/20180618102603/https://venturebeat.com/2013/10/19/why-is-mobile-gaming-so-popular-in-south-korea/. live.
  10. Web site: KakaoTalk, a Mobile Social Platform. KoreaMarketing.co=22 December 2013. https://web.archive.org/web/20161114084322/http://www.korea-marketing.com/kakaotalk-mobile-app-case-study/. 14 November 2016. 19 May 2014.
  11. Web site: South Korea's Kakao Pushes Boundaries of Social Media . 26 February 2014 . The Wall Street Journal. 21 April 2014. 21 September 2014. https://web.archive.org/web/20140921010509/http://online.wsj.com/news/articles/SB10001424052702304834704579405232330645204. live.
  12. Web site: Cnet's No.1 Free SMS app KakaoTalk . 26 September 2011 . Cnet. 26 September 2011. 29 September 2011. https://web.archive.org/web/20110929131737/http://cnettv.cnet.com/free-sms-apps/9742-1_53-50112193.html. live.
  13. Web site: App Annie Index: Apps – LINE Tops the Revenue Rankings . 30 January 2014. AppAnnie. 20 April 2014. 15 September 2014. https://web.archive.org/web/20140915053251/http://blog.appannie.com/app-annie-index-apps-december-2013/. live.
  14. Web site: Korean Software Recognition. 3 February 2014. BusinessKorea. 19 May 2014. 1 July 2014. https://web.archive.org/web/20140701150137/http://businesskorea.co.kr/article/3135/korean-software-recognition-kakaotalk-nominated-mobile-innovative-mobile-app-award.
  15. Web site: Daum, Kakao announce merger. 26 May 2014. The Korea Herald. 11 June 2014. 9 June 2014. https://web.archive.org/web/20140609150220/http://www.koreaherald.com/view.php?ud=20140526000085. live.
  16. News: Kakao Changes CEO, Name to Highlight Corporate Identity as Leader in Mobile Market. businesskorea. 24 September 2015. https://web.archive.org/web/20160112234729/http://www.businesskorea.co.kr/english/features/focus/12212-rebranding-kakao-changes-ceo-name-highlight-corporate-identity-leader-mobile. 12 January 2016.
  17. News: Daum Kakao to change its name to Kakao . yonhapnews. 1 September 2015. 10 September 2015. https://web.archive.org/web/20150910010613/http://english.yonhapnews.co.kr/news/2015/09/01/0200000000AEN20150901005700320.html. live.
  18. Web site: Korea's Daum Kakao Brings in 34-Year-Old CEO To Grow Its Messaging Business Overseas . Russell . Jon . TechCrunch. 10 August 2015 . 1 January 2016. 1 January 2016. https://web.archive.org/web/20160101081010/http://techcrunch.com/2015/08/10/koreas-daum-kakao-brings-in-34-year-old-ceo-to-grow-its-messaging-business-overseas/. live.
  19. News: South Korean Messaging-App Maker Kakao to Buy Web Portal Daum. Lee. Min-Jeong. 2014-05-26. The Wall Street Journal. 2018-04-19. en-US. 0099-9660. 20 February 2018. https://web.archive.org/web/20180220092340/https://www.wsj.com/articles/south-korean-messaging-app-kakao-web-portal-daum-to-merge-1401067902 . live.
  20. News: Kakao, KT Surge After South Korea Grants Online Banking Permits. bloomberg. 29 November 2015. 3 December 2015. https://web.archive.org/web/20151203101025/http://www.bloomberg.com/news/articles/2015-11-29/south-korea-grants-kakao-kt-led-groups-permits-for-online-banks. live.
  21. News: Kakao Bank attracts 820,000+ clients in four days since launch. FinTech Futures. 19 June 2018. en-gb. 20 June 2018. https://web.archive.org/web/20180620024322/https://www.bankingtech.com/2017/07/kakao-bank-attracts-820000-clients-in-four-days-since-launch/.
  22. News: Kakao Bank: from 0 to 1,5 millions customers in just one week!. Ray. Stephane. 19 October 2017. 2018-06-19. en. 16 July 2022. https://web.archive.org/web/20220716213125/https://www.linkedin.com/pulse/kakao-bank-from-0-15-millions-customers-just-one-week-stephane-ray. live.
  23. Web site: South Korea web-only banks thrive as traditional lenders struggle. Song. Jung-a. 5 October 2017. Financial Times. 20 June 2018. 20 June 2018. https://web.archive.org/web/20180620024721/https://www.ft.com/content/438e8524-9f6a-11e7-8cd4-932067fbf946. live.
  24. Web site: Daum Kakao Debuts Uber Rival KakaoTaxi in South Korea. Shu. Catherine . TechCrunch. 31 March 2015 . 28 February 2017. 12 March 2017. https://web.archive.org/web/20170312071849/https://techcrunch.com/2015/03/30/kakaotaxi-launch/. live.
  25. Web site: Messaging app Kakao's taxi service already has 84% of Seoul's drivers signed up. The Drum. en. 28 February 2017. 1 March 2017 . https://web.archive.org/web/20170301011057/http://www.thedrum.com/news/2016/02/25/messaging-app-kakao-s-taxi-service-already-has-84-seoul-s-drivers-signed. live.
  26. News: Kakao Taxi Draws 600,000 Requests per Day. Jin-young. Cho. 2015-12-17. BusinessKorea . 28 February 2017. en. 28 February 2017. https://web.archive.org/web/20170228171330/http://www.businesskorea.co.kr/english/news/industry/13322-new-taxi-service-kakao-taxi-draws-600000-requests-day. live.
  27. News: Kakao Launches Luxury Taxi Service. 4 November 2015. Chosun. 28 December 2015. 5 January 2016. https://web.archive.org/web/20160105234613/http://english.chosun.com/site/data/html_dir/2015/11/04/2015110401366.html. live.
  28. Web site: Tech in Asia – Connecting Asia's startup ecosystem . 9 April 2019 . 10 November 2019 . https://web.archive.org/web/20191110175841/https://www.techinasia.com/kakao-launches-ebike-sharing-service-south-korea . live .
  29. Web site: 2020-05-15 . 시총 20조 눈앞…카카오, 제조업 대표株 현대차 넘을까 . 2025-05-04 . 매일경제 . ko.
  30. Web site: Kakao . 2024-11-06 . kakaocorp.com . ko.
  31. Launch of KAKAO ENTERTAINMENT through strategic merger. Kakao Corp.. PR Newswire. May 1, 2021. April 28, 2021. https://web.archive.org/web/20210428200842/https://www.prnewswire.com/news-releases/launch-of-kakao-entertainment-through-strategic-merger-of-kakao-page-and-kakao-m-301213691.html. live.
  32. Web site: 키뉴스 . Key News. 19 February 2018. www.ittoday.co.kr. 18 February 2018. https://web.archive.org/web/20130312001716/http://www.ittoday.co.kr/news/articleView.html?idxno=30694. 12 March 2013.
  33. Web site: 카카오페이 '오래오래 함께가게' 팝업숍, 하남스타필드에 오픈 . 2024-11-11 . 다음 - 뉴스1.
  34. Web site: 카카오뱅크 . 2025-02-27 . kakaobank.com . ko.
  35. Web site: Kakao launches new collective mobility app Kakao T . 2024-11-10 . m.theinvestor.co.kr . en.
  36. Web site: 모바일 게임 '프렌즈타운', 신규 콘텐츠 '무지의 놀이공원' 등장 . 2024-11-28 . 다음 - 포모스.
  37. Web site: Tech in Asia – Connecting Asia's startup ecosystem . 9 April 2019 . 3 October 2021 . https://web.archive.org/web/20211003213328/https://www.techinasia.com/kakao-launches-blockchain-platform-klaytn . live .
  38. Web site: 나 . 유라 . 2015-11-23 . '서비스 종료' 카카오헬로, '유사 앱'과 차별화 전략 실패 . 2025-09-19 . 아시아타임즈 . ko.
  39. https://pickool.net/naver-vs-kakao-way-of-working-with-startups/ Naver vs. Kakao: Way of working with startups.

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