Kakao to Withdraw from Hair Salon Reservation Business over 'Alley Market Infringement' Concerns

[Asia Economy Reporter Kang Nahum] Kakao, embroiled in controversy over infringement on local businesses, is expected to withdraw from the beauty reservation business following its exit from flower, snack, and salad delivery brokerage services.

According to industry sources on the 4th, Kakao is considering withdrawing its hair salon and nail shop reservation service, ‘Kakao Hairshop,’ within this year. It is reported that Kakao has communicated this plan to members of the National Assembly.

Kakao Hairshop has been regarded as a representative local business infringement service. This service is operated by Wyatt, in which Kakao’s investment subsidiary Kakao Investment holds approximately 24.52% of the shares, boasting about 70% market share.

A Kakao official stated, "We are currently discussing the withdrawal of businesses involved in local business infringement controversies," adding, "We will continue to seek ways to coexist with small business owners and partners."

Within the industry, the withdrawal of the screen golf business operated by Kakao VX is also being mentioned. However, since consultations with about 1,200 franchise stores are required and damage to franchise owners is expected, the withdrawal decision is unlikely to proceed smoothly.

Meanwhile, on the 14th of last month, Kakao announced a coexistence plan and declared it would organize businesses infringing on local markets. The plan included ▲ establishing a 300 billion KRW fund to support small business owners ▲ withdrawing flower, snack, and salad delivery brokerage services ▲ abolishing KakaoT’s ‘Smart Call’ feature.

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