Kakao CEO Jungsin A: "Reducing Affiliates from 99 to Around 80... Personalized KakaoTalk Services with AI"

Combining AI with KakaoTalk: Driving New Growth Momentum
Use ChatGPT in the Chat Tab and Safeguard Your Privacy
"Company-wide Cost Efficiency... Focusing on Future Growth"

Kakao, which had previously faced criticism for its sprawling business operations, has significantly reduced the number of its group affiliates to double digits. On October 13, CEO Jungsin A announced in a letter to shareholders that the Kakao Group currently has 99 affiliates and plans to further reduce this number to around 80 by the end of the year.

Jungsin A, CEO of Kakao

CEO A has been consistently working to improve governance efficiency. When she took office as head of the CA Council in September 2023, Kakao had 142 affiliates. By the time she was appointed CEO in March last year, the number had decreased to 132, and it now stands at 99. This represents a 30% reduction in affiliates over two years. This achievement is the result of both a strategic focus on core businesses in the era of artificial intelligence (AI) and efforts to restore public trust.

Kakao is also improving its financial structure to concentrate on its core businesses. In the second quarter of this year, Kakao’s consolidated operating profit reached 185.9 billion won, a 39% increase compared to the same period last year, marking the highest quarterly figure in the company’s history. Robust growth in KakaoTalk-based business and improved profitability among affiliates have strengthened the company’s financial foundation.

Kakao is currently accelerating efforts to create new growth momentum by integrating AI with KakaoTalk. The company plans to introduce services tailored to individual needs and preferences, enabling all 50 million users to easily and conveniently access AI through KakaoTalk.

At the end of this month, Kakao will launch "ChatGPT for Kakao," a joint product with OpenAI. Users will be able to access ChatGPT directly from the KakaoTalk chat tab without needing to install a separate application.

Sam Altman, CEO and founder of OpenAI, the developer of ChatGPT, is shaking hands with Jeongshin A, CEO of Kakao, at the "Kakao Media Day" held last February. Photo by Kang Jinhyung

The on-device AI service "kanana in KakaoTalk" is also set to launch soon. Utilizing Kakao’s proprietary lightweight model "kanana nano," this service operates solely within the smartphone, prioritizing user privacy and ensuring safe usage. In addition, Kakao is accelerating the expansion of its AI ecosystem by connecting external services as agents through the MCP and Agentic AI Platform released last August.

Kakao plans to establish a new AI education program for teenagers and, in cooperation with Korea’s four major science and technology institutes, invest 50 billion won over the next five years to foster AI talent and support research and startups. The company will also launch an integrated support task force for small business owners to provide customized, step-by-step assistance, thereby strengthening partnerships and mutual growth.

CEO A stated, "Over the past year and a half, Kakao has rapidly restructured its group governance and implemented company-wide cost efficiency measures, establishing a financial structure that allows us to focus on future growth. Starting in the second half of this year, we will fully introduce innovations in everyday life by combining AI with KakaoTalk."