KaKao

- Kakao implements coexistence programs centered around partners such as small business owners, creators, and platform workers to contribute to social sustainability.

- Kakao is set to begin the operation of the SME Support project helping small businesses secure regular customers, and the “Jegaburch” project connecting agricultural and marine producers to customers.

- The Global Original IP Platform will play more active roles in helping creators penetrate global markets, with a plan to set up a foundation to support creation activities.

- With the implementation of the ‘Beyond Korea’ vision in full swing, Kakao expects to accelerate global expansion with a goal to achieve 30% of revenue from overseas markets within 3 years.

 

[April 6, 2022] Kakao, led by Namgoong Hoon, announced sustainable growth strategies in collaboration with the society, embarking on full-scale execution.

 

"Co-Directors Kim Sung-soo and Hong Eun-taek of Kakao's Corporate Alignment Center (CAC), along with Kakao's newly appointed CEO, Namgung Hoon, held an online press conference on the 6th to announce the coexistence plans of the KakaoGroup and the direction for expanding its global business to achieve the 'Beyond Korea' vision."

 

◼︎ The coexistence plan for the KakaoGroup focuses on the implementation of coexistence programs centered around partners to contribute to social sustainability.

At the conference, Director Hong Eun-taek disclosed the direction of utilizing the cooperative fund established at the Group level. Kakao and its major subsidiaries plan to utilize a cooperative fund of 300 billion won over the course of 5 years to support various entities, including small business owners and local partners, digital content creators, performing artists, mobility platform workers, startups and social innovators, as well as local communities and the physically and digitally disadvantaged, enabling them to achieve sustainable growth through digital utilization.

 

# Set to launch the SME Support project and the Jegaburch project to promote the digital conversion of small businesses and local partners.

 

In the context of the normalization of non-face-to-face interactions and accelerated digitalization due to the COVID-19 pandemic, Kakao is set to launch the SME Support project (“Sosin Merchant”) in the first half of the year. The SME Support project aims to assist merchants nationwide who run businesses with dedication, enabling them to secure regular customers and conduct mobile marketing through KakaoTalk channels. Kakao will provide support programs, including dedicated "Digital Supporters" who will directly assist business owners unfamiliar with digital communication, and offer online customized educational content. Additionally, Kakao plans to support KakaoTalk channel operation costs and distribute the "KakaoTalk Channel Promotion Kits" to help promote stores and recruit regular customers. Furthermore, Kakao will offer "Easy Payment for Sosin Merchants" in collaboration with KakaoPay. In the first half of the year, Kakao will pilot the program targeting a few traditional markets and collaborate with related institutions and organizations to expand the project nationwide.

 

Expanding its operations, Kakao also plans to strengthen its efforts to connect agricultural and marine producers and consumers through the "Jegabuchi" project, aimed at ensuring fair prices for our agricultural and fisheries products. Since August 2021, Kakao has been purchasing surplus agricultural products in bulk and selling them through its joint ordering platform, Kakao Makers. So far, a total of 651 tons of agricultural products have been purchased, contributing to price stabilization by achieving sold-out results with each launch of products directly sourced from the production sites. Starting this year, Kakao plans to widen the scope of regions and product categories to further aid farmers and fishermen in overcoming their difficulties.

 

# Strengthening its role as a gateway for creators to to enter overseas markets through the Global Original IP Platform, and pushing forward with the establishment of a foundation to support creators.

 

Kakao acknowledges that to expand creators' earnings, it must serve as a gateway for creators to enter the global market through the 'Global Original IP Platform'. To achieve this, Kakao will continue to maintain global initiatives while also allocating cooperative funds to address and support issues faced by creators.

 

First, Kakao Entertainment plans to invest a minimum of 100 billion won over the next 5 years to establish the Kakao Entertainment Creation Support Foundation (tentatively named), aimed at enabling creators to engage in sustainable creative activities. The foundation will provide various support programs, including support for creation, psychological counseling for creators during the creative process, legal assistance for resolving copyright issues, and other initiatives to improve working conditions. Additionally, Kakao Entertainment plans to offer cultural creation education through industry-academia collaboration to nurture aspiring creators and support diverse creative opportunities. Furthermore, the company aims to finalize the establishment of a transparent settlement system for the creator ecosystem by the first half of the year, allowing both content providers (CPs) and authors to review settlement details. Moreover, Kakao Entertainment will continue to enhance measures to expand authors' earnings, such as improving revenue distribution from viewer-end advertisements.

 

Meanwhile, Kakao Games plans to expand investment and support for indipendnet and small game developers, while also focusing on supporting game culture experiences for digitally marginalized groups and nurturing industry talent.

 

Kakao's support for digital creators extends to the performing arts field. Kakao is currently in the process of establishing the Seoul Kakao Arena, the first and largest-scale public music performance facility in Korea, aimed at supporting artists' creative activities and contributing to the K-pop content industry. Through the arena, Kakao plans to operate cooperative programs to create growth opportunities for marginalized artists. Additionally, Kakao will take the lead in Group support by providing professional training for performing arts experts, operating academies for local residents to enjoy cultural arts, and supporting cultural arts infrastructure for teenagers.

 

# Kakao Mobility to contribute to support platform workers moving towards a better quality of life, and advancement of the industry.

 

Kakao Mobility is committed to engaging in communication with stakeholders and strives to contribute to improving the earnings and working conditions of platform workers, as well as advancing the industry, ultimately supporting the transition to a better quality of life.

 

As part of its ongoing efforts to enhance social responsibility, Kakao Mobility currently operates the Coexistence Advisory Committee and the Mobility Transparency Committee. Furthermore, to increase platform workers' earnings, it has been implementing measures such as lowering the subscription fees for the Pro-Membership, distributing cancellation fees for Blue Service, and improving commission rates for designated drivers since September last year.

 

Kakao Mobility is actively seeking ways to establish a sustainable foundation for the continued development of the existing industry and to revitalize the mobility market fundamentally. By providing various products and services tailored to the demand for better ride and dispatch experiences, Kakao Mobility aims to substantially increase taxi drivers' earnings and advance the industry. To achieve this, the company will maintain ongoing dialogues and consultations with the taxi industry, government, relevant agencies and stakeholders.

 

Kakao Mobility is also preparing support for the future of the mobility market. It is currently devising measures to address the difficulties faced by the taxi industry in transitioning to electric vehicles due to insufficient driving range and charging infrastructure. Additionally, Kakao Mobility is exploring various alternatives to support vulnerable populations with accessibility issues and aims to ensure that the mobility industry as a whole can have a positive social impact.

 

Kakao Mobility will announce its long-considered trust-based coexistence and ESG management strategies on the 7th.

 

Director Hong Eun-taek emphasized, "Coexistence is not just a mission but an essential core value that Kakao must pursue for its growth, and it is the key value that allows society and businesses to continue sustainable growth together." He further stated, "We will spare no effort to support small business owners in successfully transitioning to digital platforms and ensure that our partners can reap tangible benefits."

 

◼︎ With the implementation of the ‘Beyond Korea’ vision in full swing, Kakao expects to accelerate global expansion with a goal to achieve 30% of revenue from overseas markets within 3 years.

 

Kakao is intensifying its global initiatives to meet the expectations of the society and to realize its new vision, 'Beyond Korea,' for the next decade. Director Kim Sung-soo stated that, to achieve this, Kakao aims to increase its overseas revenue share from 10% to 30% within three years and plans to raise the overseas revenue of the KakaoGroup by more than 40% compared to the previous year.

 

KakaoGroup plans to secure global hub regions based on platforms, content, and intellectual property (IP), and expand market share through synergies among Kakao Communities. Building on the success and business expertise of Kakao Piccoma, Kakao aims to explore new business opportunities in the Japanese market, such as games, metaverse, and NFTs. Additionally, Kakao Piccoma will launch a full-scale expansion into the European market, starting with France. Kakao Piccoma France will expand its business throughout Europe by simultaneously offering Japanese-style comics provided by famous Japanese publishers and French publishers, as well as webtoons optimized for smartphones from Korea, Japan, and China.

 

Kakao Entertainment plans to aggressively target the global market, focusing on webtoon/web novel platform businesses in the United States, ASEAN, Greater China, and India. The company aims to triple its global transaction volume by 2024 compared to the current level. In North America, Kakao Entertainment will maximize synergies through the triangle alliance of Tapas, Radish, and Wuxiaworld, aiming to achieve a transaction volume of 500 billion KRW by 2024. In the ASEAN market, Kakao Entertainment will concentrate on its Kakao Webtoon platform and leverage its portfolio of over 10,000 original IPs to expand its influence. With innovative UX/UI and a diverse range of IP genres, Kakao Entertainment aims to dominate the No. 1 position in Thailand and Taiwan. and to rebrand Kakao Page as Kakao Webtoon in Indonesia.

 

Kakao Entertainment's music and media businesses are also driving into the global market. In the music business, the company aims to discover and cultivate global artist IPs with fans worldwide. Particularly in key K-pop countries, including North America, Kakao Entertainment will establish infrastructure with local expertise and professional capabilities to comprehensively support artist activities. In the media business, Kakao Entertainment will collaborate with top creators to introduce premium content IPs targeting the global market, including dramas, movies, and entertainment shows, solidifying its position as a global major studio.

 

CAC is organizing a "Global Synergy TF" in which major affiliates participate to drive forward the "Beyond Korea" initiative. This task force aims to explore points of mutual cooperation such as content, infrastructure, and network among Kakao Communities. Additionally, it plans to support the framework for collaboration with global companies, including M&A, equity investments, and partnerships, in the fields of global, future, and core businesses.

 

CAC Director Sung-soo, commented, "KakaoGroup will support meeting societal expectations and sharing the fruits of growth with partners." He further added, "We will strive to contemplate our social role and fulfill the responsibilities promised to society." (End)