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 actual revenue and expanded service usage.
With a planned corporate split in December, CEO Jeong Shin-a faces increasing pressure to demonstrate the results of the 'KakaoTalk innovation' initiative.
On October 6, Kakao announced that it continues 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 integrates several key services, including gifting, Talk Deals, KakaoPay, Melon, KakaoPage, emoticons, Talk Cloud, KakaoPay Insurance, and KakaoPay Securities. Members can earn shopping points through gifting and Talk Deals, accumulate KakaoPay points, and choose between Emoticon Plus or Talk Cloud. Additional benefits include KakaoPage cash, securities commission cashback, and mobile screen damage compensation.
Given that the monthly subscription fee matches that of Naver Plus Membership, the differentiation of initial benefits is seen as a challenge. Naver Plus has expanded its offerings 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 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 enhance benefits through external partnerships in the future.
In the AI sector, Kakao is solidifying its strategy by taking on government projects centered around KakaoTalk, but it has yet to achieve notable results. Since Jeong Shin-a's appointment, 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 terminate the 'Kanana' service on October 15 and concentrate AI functionalities 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 success of its AI new business.”
As the company approaches its planned corporate split, shareholders are keenly focused on whether the new business initiatives based on KakaoTalk will translate into actual growth. A Kakao representative stated, “Following the soft launch, we plan to expand benefits and outreach through various service integrations.”
* This article has been translated by AI.
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