KaKao

- Gained positive response by introducing various new projects that align with Kakao’s ESG management… Achieved 700 billion KRW seven months after exceeding 600 billion KRW in August 2022

- Implement meaningful activities that benefit the society and environment, including “Jegaburch,” which supports sales channels for farmers, the “Upcycle Project” to reuse products, and the environment fund “Eco Seed”

 

[March 10, 2023] Kakao’s continued efforts to realize social value is coming to fruition.

 

Kakao (CEO, Hong Euntaek) announced on March 10 that its impact commerce Kakao Makers had reached a cumulative transaction of 700 billion KRW, which is a milestone achievement since exceeding the 600 billion KRW mark in August of last year.

 

Kakao Makers, which was launched in February 2016, aimed at innovating the manufacturing industry through group orders, where products were manufactured after the demand was confirmed, and customized production, which helped reduce inventory. Kakao Makers has shown strong and sustainable growth by providing manufacturers and creators with production opportunities, as well as the opportunity to connect with consumers.

 

Kakao Makers continue to attract positive response from users, with an order success rate of 99%, and has recorded an increase in transactions, from 100 billion KRW in 2019 to 500 billion KRW in 2021. As of February 2023, more than 5,820 manufacturers and creators were granted production opportunities, with more 2.5 million users purchasing over 23.1 million products.

 

Kakao Makers has introduced various projects that align with Kakao’s ESG management and gained a lot of attention by making valuable attempts to spread good influence in the environment and society as a whole.

 

“Jegaburch,” which was introduced in August 2021, provides sales channels for agricultural, livestock, and fishery products that would otherwise be discarded, so that agricultural, livestock, and fishery products and processed foods can be sold at a fair price. Jegaburch has received positive response by reducing producer’s inventory, lowering the environmental expense of the ecosystem, and stabilizing prices by balancing supply and demand. The cumulative transaction of Jegaburch currently stands at 17 billion KRW, with over 3,500 tons of agricultural, livestock, and fishery products sold. The Jegaburch Project recently expanded the variety of items that can be sold at a reasonable price by co-developing special offer products with Baesangmyeonjuga Brewery and Geumsan Ginseng Cooperatives and introducing products from small business owners in traditional markets. Jegaburch will continue to form collaborative relationships with a wider range of partners.

 

Kakao Maker’s “Upcycle Project” is a new type of eco-friendly activity where goods that are about to be discarded are upcycled to become completely different products and then donated. The Upcycle Project has been held three times since February 2022. 20,000 pairs of socks and 1,000 cardigans were produced during the first two projects and donated to disadvantaged children and seniors. The third round of the Upcycle Project is currently underway and participants for the fourth round have already been recruited. Kakao Makers will continue to promote the value of upcycling to more users and encourage their participation in this meaningful project, while finding more items that can open new possibilities for the manufacturing industry.

 

“Eco Seed” is an environment fund raised by profits from sales made through Kakao Makers. For every product a user orders, 100 KRW is placed in the fund and used to save the environment. Users can select areas of the environment they are interested in, and Kakao Makers use the Eco Seed fund to develop forests or improve the marine environment according to the percentage selected by users. About 390 million KRW was raised for the Eco Seed fund last year, and the fund is being used to create fine dust barrier forests, clean marine debris, and develop rest areas using abandoned sites.

 

The made-to-order brand “P.O.M (Peace of Mind)” also launched several products made for donation purposes. Around 270 million KRW was donated for more than ten campaigns, including those for Ukrainian children and to restore damages caused by the forest fires in Kangwon-do. Last February, products to aid those impacted by earthquakes in Turkey were released, and proceeds of around 180 million KRW is set to be donated to UNICEF. Kakao Makers will continue to launch various products that will help people in need and contribute to the sustainability of society and the environment.

 

This year, Kakao Makers plans to expand the scope of its projects by strengthening the internal stability of the projects. Jegaburch will not limit projects to agricultural, livestock, and fishery products, but expand it to a wider variety of farms, including the floricultural industry, while debuting participatory products that will help revitalize regions. Kakao Makers will also partner with offline fairs to support sales channels for small and medium sized businesses.

 

Jung Young Joo of Kakao Makers said that “Kakao Makers has implemented various projects for co-existence and cooperation, and has made efforts to create opportunities where both producers and consumers can share experiences within the boundaries of Kakao Maker” and added that “Kakao Makers will continue to carry out Kakao’s ESG management activities along with meaningful activities that are unique to impact commerce.” (End)