SEOUL, KOREA - Kakao is attempting to transform itself into a “life platform” on the back of its smash-hit messenger KakaoTalk.With 37-million KakaoTalk subscribers in Korea, Kakao gained success as a game platform. Without resting on its laurels, Kakao is now taking steps to find a new future growth engine.
Kakao Game passed the 500-million mark in cumulative number of subscribers in just two months after being launched in 2012 when it started with ten games, positioning Kakao as the superpower in the mobile game platform industry.
Kakao’s recent eye-dazzling growth was led not by advertising but by game revenues. Kakao relied heavily on games, with 76 percent of its sales stemming from game-related businesses.
The situation changed this year, with the share of games in Kakao’s total sales falling to the 60-percent level in the second quarter of this year.As part of an effort to find a new breakthrough, Kakao decided to merge with an online portal Daumwhile preparing to launch into the financial business.