Kakao’s incoming CEO to launch two metaverse platforms

‘Beyond Korea’ is South Korean tech juggernaut Kakao Corp.’s new vision for the future. 

Kakao’s new CEO nominee Namkoong Whon held an online press conference Thursday and said: "The global market is where Kakao is headed to next.” 

In detail, Namkoong laid out plans for new metaverse platforms, merging of global affiliates, and new mergers and acquisitions outside of the peninsula.

The plan to go abroad follows the waning popularity of Kakao as a company in South Korea, despite the widespread use of the KakaoTalk messenger.

In particular, Kakao’s domestic expansion last year received a lot of backlash. Coupled with some other issues, Kakao has been working on rebranding its image and win back investors’ trust.

Its share price has been plummeting since late last year. 

“I think the Korean people perceive that a company of Kakao’s size should not be competing in the domestic market and go abroad instead,” Namkoong said. 

The former chief executive at a number of internet companies said, “Going abroad is Kakao’s duty and the direction our society requests of the company.” 

Namkoong is a seasoned leader who served at NHN Corp.’s US office, CJ Internet Corp. and WeMade Co. He was also a founding member of Hangame Communications established in 1999.

The new CEO nominee singled out the launch of metaverse platforms as the backbone of its global expansion. 

To create platforms that appeal to the global audience, Kakao has launched two task forces named V2FT and OTF early last month. 

The V2FT is developing a text-based metaverse. 

Unlike the currently popular metaverse platforms like Zepeto by Naver Corp. and US-based Roblox, text-based metaverse will allow users to experience the virtual world through chats. 

“Simply put, the metaverse that V2TF envisions is a role-playing chatting platform,” the incoming chief executive said. He added the platform will be powered by artificial intelligence developed by Kakao Brain.

On the contrary, OTF is developing an image-based open chat metaverse – without texts. 

In fact, communications on the platform will only be through images to break down the language barrier. 

Unlike existing messaging platforms that mobilize peole who already know each other in the physical world, the image-based metaverse will bring people with similar interests together to discuss shared passions. 

IN-HOUSE MERGERS

The South Korean company is considering merging some of its overseas affiliates, most of which are based in neighboring Japan.

For instance, Namkoong is looking into merging the Japanese webtoon subscription service Kakao Piccoma with Kakao Games Japan. 

“Out of the group's 174 affiliates, 42 of them are foreign entities,” he said. “We will figure out a way to create synergy effects via centralized management.”

Kakao is also poised to expand its capital investment for acquisition of companies abroad. 

Namkoong said mergers and acquisitions could serve as the cornerstone of its global business expansions. 

In Dec. 2020, Kakao Games Corp. poured around 190 billion won into game company Neptune Corp. The now Kakao affiliate has subsequently acquired a metaverse company Haegin to enter the nascent industry. 

Namkoong said the Neptune acquisition is an example of the type of acquisition the company will pursue in the global arena. 

Write to Minki Koo at kook@hankyung.com
Jee Abbey Lee edited this article.