According to information technology (IT) industry on the 14th, Kakao has decided to merge Kakao Commerce 100%. It plans to hold a board meeting next week to deal with the merger agenda. Kakao Commerce split from Kakao in December 2018.
Kakao is trying to differentiate itself from Naver and Coupang through its newly launched open e-commerce platform 'Kakao Branch' in the second half. It is currently negotiating with LG Household & Healthcare's Maeil Dairy, Yuhan-Kimberly, Samsung Electronics, and other manufacturers.
While Naver Shopping is a model that receives fees from store companies, Kakao branch aims to be an open platform that provides user data to store companies without receiving fees. Instead, it will use Kakao's advertisements as a paid model when it reaches a certain size of economy in the future.
Kakao branch aims at comprehensive e-commerce platforms such as platforms operated by Naver and Coupang. Until now, it has focused on special e-commerce businesses such as "Gift" (Kakao Talk-based e-commerce), "Talk Deal" (Joint Purchase), and "Kakao Maker" (Pre-Order Purchase), but plans to leap into a comprehensive e-commerce platform with the merger.
Competition in South Korean e-commerce markets is expected to become fiercer due to strengthening Kakao's comprehensive platform business. Naver and Coupang share 18% and 13% of South Korean e-commerce markets, respectively. Kakao, which has stayed on special platforms, has only 2% of market share.
Reporter Lee Ji-sun stockmk2020@gmail.com
