Kakao to spin off e-commerce unit for expansion

Oct 8, 20181 min read

South Korean mobile messaging platform Kakao is spinning off its e-commerce unit for further expansion.

The new organisation will be Kakao’s largest spin-off, worth about KRW510.3 billion (US$458.6 million) by December. It will take over the operation of the Kakao Gifts, Shopping, Kakao Style and Kakao Farmer services.

Kakao has also made plans to acquire global e-commerce firms and has expressed being open to securing additional funds through its spin-off.

A spokesperson for the company said: “We are indeed open to securing additional investments after the process is completed. But at the moment we do not have any specific plans.”

Kakao’s e-commerce business is weak in comparison with industry leader Naver, achieving only one seventh of the sales of its competitor. Its messenger service, conversely, remains dominant in its market.

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Mei Ling Tan

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Mei Ling Tan is the Editor of Retail News Asia, where she leads the editorial team in delivering in-depth coverage of Asia’s dynamic retail landscape. With over a decade of experience in business journalism, Mei Ling is known for her sharp analysis, deep industry insights, and commitment to uncovering the stories behind Asia’s most innovative retail brands. Before joining Retail News Asia, Mei Ling held senior reporting roles at regional business publications, covering everything from consumer trends to digital transformation in retail. A graduate of the National University of Singapore with a degree in Communications and New Media, she combines journalistic integrity with a strong understanding of evolving market forces. Outside the newsroom, Mei Ling is a frequent speaker at industry panels and a mentor for young journalists.

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