The 100 Trillion Subscription Economy Market Becomes a Battleground for Innovative Companies

SKT, Naver, Kakao Compete with Coupang

As SK Telecom enters the subscription economy market, competition in 'subscription services' with Naver, Kakao, and Coupang is expected to intensify.

According to the IT industry on the 25th, Naver launched a subscription service on the 20th that allows users to receive products regularly. The subscription product categories include daily necessities, food, kids, beauty, digital, health, and flower delivery. As the largest portal in Korea, Naver plans to strengthen its competitiveness in the subscription market by combining various product databases (DB) and technologies and linking them with its membership program. In particular, Naver has introduced a model through 'Naver Plus Membership' at 4,900 KRW per month, which provides Naver Pay point accumulation, webtoons, music, and other content.

Kakao also launched a subscription platform called 'Subscription ON' using 'KakaoTalk' in June. Users can access subscription services within KakaoTalk. Subscription ON offers a variety of subscription products, including goods such as food, electronics, and daily necessities, as well as intangible services like cleaning and laundry. A key strength is the enhanced convenience for users by linking with other services within KakaoTalk. Payments can be made via KakaoPay, and delivery information is notified through KakaoTalk. The content subscription model 'Kakao View' was also launched this month.

Coupang has long offered a regular delivery service that delivers daily necessities such as bottled water on desired dates. Coupang also provides a subscription service called 'Rocket Wow Club,' which, for only 2,900 KRW, allows users to enjoy free shipping regardless of purchase amount, same-day delivery, and dawn delivery services. Wow Club members can also use Coupang Play, an online video streaming service (OTT).

The reason domestic IT giants are entering the subscription economy market is due to its growth potential. According to KT Economic Management Research Institute, the domestic market including rentals grew from 25.9 trillion KRW in 2016 to 40.1 trillion KRW last year, an increase of over 50%. The industry estimates that the market will reach 100 trillion KRW by 2025. The generation of steady income is also considered the biggest advantage of the subscription economy model. An IT industry official said, "From a company’s perspective, securing a cash cow becomes possible, and the 'lock-in effect' of binding platform users through subscription services can also be expected."

This content was produced with the assistance of AI translation services.