[New Word Dictionary] Kakao Danghada - The Dinosaur Platform That Has Dominated Even Neighborhood Markets

Kakaodanghada is a newly coined term criticizing Kakao's market entry, which has caused conflicts with existing businesses due to its sprawling business expansion, including KakaoTalk, taxi calling, store reservations, gift services, and financial services. Illustration = Photo by Oh Seongsu

[Asia Economy Reporter Kim Heeyoon] As criticism against Kakao intensified due to controversies over infringement on local businesses, Kim Beom-su, chairman of Kakao’s board who recently founded the company, took steps to ease tensions by announcing plans to adjust or withdraw some business operations and strengthen social responsibility. The decisive factor that turned Kakao, once popular as a public service, into a target of criticism was the fare increase for the ‘Smart Call’ service announced last month by Kakao Mobility. Although Kakao eventually withdrew the fare hike proposal, the conflict between Kakao and its business partners had already escalated into a dispute between Kakao and its users. According to the Fair Trade Commission’s announcement, Kakao Group’s ranking in the business world rose five places from 23rd last year to 18th this year. It has 118 affiliates, the second largest after SK’s 148. Riding this momentum, Kakao also completed its initial public offerings in one go. Starting with Kakao Games in September last year, Kakao Bank went public this year. Kakao Pay and Kakao Mobility are also preparing for IPOs.

The term “Kakao-danghada” (being ‘Kakao-ed’) criticizes Kakao’s market entry, which has caused friction with existing businesses through its sprawling expansion into services such as KakaoTalk, taxi-hailing, store reservations, gift-giving, and financial services. It is a variation of the term “Amazonized,” which criticizes the giant platform company Amazon for similar behavior overseas. As criticism extended beyond the industry to consumers, Chairman Kim stated, “We must establish a model where Kakao and its partners can grow together in line with the essence of creating a better world through technology and people,” and announced plans to set up a 300 billion KRW mutual growth fund over five years. An industry insider pointed out, “When platform companies that have formed monopolies based on user convenience pursue monetization through commission hikes, resistance from both the industry and consumers is expected to intensify, so various corporate efforts for mutual growth are necessary.”

Example

A: It’s so hard to get a taxi. Even calling through KakaO doesn’t work.
B: Hey, call with Smart Call. That way, you’ll get one easily.
A: I heard they raised the call fee and introduced a paid membership service for drivers?
B: Well, since everyone uses only this, they’ve completely monopolized the market. Nowadays, even hair salons and nail shops take reservations through KakaO. Without KakaO Talk, it’s hard for you or me to communicate.
A: This isn’t just about local businesses; our whole life is totally Kakao-ed. Giant platforms are scary.

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