Emart SSG.com Parts Ways with Kakao... Kakao Enhances Its Own Food Tech Capabilities

'Kakao Jangbogi' Launched in 2017 to End Next Month
Kakao Commerce to Revamp as Food Specialty Service Based on Talk Store and Products
All Cashable Points Including Partnership Points to Be Refunded

[Asia Economy reporters Cha Min-young and Bu Aeri] SSG.com, the online integrated mall under the Emart group, will end its 'Kakao Jangbogi' shopping service, launched in partnership with Kakao in 2017, next month. Although it was regarded as an innovative food tech collaboration model, Kakao has shifted its strategy as it strengthens its own food distribution and curation capabilities.

According to industry sources on the 22nd, Kakao Commerce announced that the 'Kakao Jangbogi' service linked with SSG.com (formerly Emart Mall) will be terminated on the 26th of next month. Consequently, related shopping partnership points, deposits, and discount coupons will expire.

A Kakao representative stated, "Following the termination of the partnership with SSG.com, Kakao Jangbogi will be reorganized on the 27th of next month into a food-specialized service based on products within Talk Store and the store," adding, "We will primarily feature recommended Talk Deal products from the food category within Talk Store."

Furthermore, Kakao plans to offer a food curation service featuring popular and preferred items among customers, including desserts, meal kits (ready meals), and fresh produce directly shipped from production areas, as well as essential food and beverages.

Kakao Jangbogi first launched in April 2017 and attracted attention as a food tech collaboration case. At that time, Emart Mall signed a contract with Kakao to enable the purchase of 100,000 products sold through Emart’s largest distribution channel, its online mall.

It was particularly notable that users could check fresh food, processed food, and daily necessities at a glance by entering the 'More' menu in KakaoTalk without installing a separate mobile app. The use of Kakao’s platform, known as the 'national chat application,' also drew significant attention.

SSG.com and Kakao are encouraging users of Kakao Jangbogi shopping to use up their partnership points and accumulated credits. However, since these are cash-equivalent assets, the policy is to refund all points and credits.

An SSG.com representative confirmed, "The contract has indeed ended," and added, "All cash-equivalent accumulated credits such as consumer partnership points will be fully refunded."