Kakao’s market position
The internet giant’s current state is the result of the merger of Kakao and internet search portal Daum in 2014. Daum was originally founded in 1995 and was the second-largest search engine next to Naver but also offered other online-based services. After the merger, some of these were simply renamed for rebranding, such as Daum map becoming Kakao map. The only other comparable domestic company is Naver Corporation. As both offer various internet-based services, the two conglomerates are fighting on multiple fronts, spanning different markets. In the domestic market, Naver can easily be called the leader in terms of search engines, while Kakao takes the top spot for social media and communication with its widely used mobile messenger app KakaoTalk. Their fierce battle for users has also continued overseas, such as in the European webtoon market.What is KakaoTalk?
KakaoTalk and its distinctive ringtones are more than just commonplace in South Korea. South Korean President Yoon Suk-yeol even called it the country’s “national communications infrastructure”. Whereas other regions use WhatsApp, LINE, or WeChat, Kakao is the go-to instant messaging application and the most used social media for South Koreans. Next to texting and calling, users can also take part in open group chats with strangers or promotion channels, send each other gifts and vouchers, and purchase emoticons in the in-app store. Providing many options and being widely accessible, KakaoTalk has become the most used social media platform for social commerce domestically. As Korean culture and content of all sorts continue to gain worldwide popularity, KakaoTalk has found appeal with international users as well, increasing its worldwide user number every quarter.
