Kakao is enhancing its platform competitiveness by introducing a paid membership and artificial intelligence (AI) services centered around KakaoTalk. However, the current focus on integrating its own services raises questions about whether it can effectively translate its user base into increased revenue and service usage.
With a corporate split resolution approaching in December, CEO Jeong Shin-a faces pressure to demonstrate the results of the 'KakaoTalk innovation' initiative.
On October 6, Kakao announced it is continuing to accept users for its Kakao Membership, which was launched on October 1. The membership, priced at 4,900 won per month, is being rolled out through a soft launch aimed at a limited number of users. While the exact recruitment target has not been disclosed, the program will close once the internal goal is met, with plans to gradually expand the number of subscribers.
The Kakao Membership is an integrated service that combines major Kakao offerings, including Gift, Talk Deal, Kakao Pay, Melon, Kakao Page, emoticons, Talk Cloud, Kakao Pay Insurance, and Kakao Pay Securities. Members can earn shopping points through Gift and Talk Deal payments, accumulate Kakao Pay points, and choose between Emoticon Plus or Talk Cloud. Additional benefits include Kakao Page cash, securities commission cashback, and compensation for mobile screen damage.
Given that the monthly subscription fee is the same as Naver Plus Membership, the differentiation of initial benefits is seen as a challenge. Naver Plus has expanded its benefits beyond shopping to include reservations and content, as well as partnerships with external services like Netflix. In contrast, Kakao has primarily focused on bundling its own services around KakaoTalk.
A Kakao representative stated, “As this is a soft launch, we plan to gradually expand the membership scope with various partners in mind.” Initially, the strategy is to combine frequently used services within the Kakao ecosystem, with plans to broaden benefits through external partnerships in the future.
In the AI sector, while Kakao is solidifying its strategy by taking on government projects centered around KakaoTalk, it has yet to achieve notable results. Since Jeong Shin-a took office, Kakao has integrated 'Kanana in KakaoTalk' and introduced 'ChatGPT for Kakao' in collaboration with OpenAI, positioning KakaoTalk as a key interface for AI services.
However, the decision to end the 'Kanana' service on October 15 and concentrate AI functions within KakaoTalk has drawn criticism for potentially missing opportunities. The monthly active users (MAU) of the Kanana app remained limited, dropping from about 13,000 in January to around 10,000 in September, compared to KakaoTalk's user base.
On a positive note, Kakao has been selected as the lead agency for the 'Everyone's AI' project. The company plans to unveil a beta version of a nationwide AI service based on KakaoTalk by the end of this month, with a full launch expected later this year. The goal is to integrate AI capabilities into the main interface of KakaoTalk, connecting a large user base to AI services.
Hanwha Investment & Securities noted in a report that “the company’s stock has continued to underperform relative to market returns, and it appears to be increasingly linked to expectations for the performance of its 'AI new business'.”
However, with the corporate split resolution approaching, shareholders are focused on whether the new business based on KakaoTalk can lead to actual growth. A Kakao representative stated, “Following the soft launch, we plan to expand benefits and outreach by linking with various services.”
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.