[Asia Economy Reporter Buaeri] Kakao is pushing forward with a business structure reorganization to strengthen its shopping and character business divisions.
According to industry sources on the 4th, Kakao is considering a merger between its commerce-specialized subsidiary Kakao Commerce and its character-specialized subsidiary Kakao IX to create synergy. Various options are being considered, including separating only the character division of Kakao IX and merging it into Kakao Commerce.
Kakao Commerce is a subsidiary responsible for Kakao's commerce sectors such as KakaoTalk's Gift and Store services, recording sales of 296.1 billion KRW last year. Kakao IX manages the character business of Kakao Friends. With popular characters like 'Ryan,' it has played a significant role in Kakao's growth. Last year, it recorded sales of 153.6 billion KRW.
Industry insiders interpret Kakao's business structure reorganization as a response to the growing e-commerce market amid the recent impact of the novel coronavirus (COVID-19).
A Kakao IX official stated, "It is true that we are considering a merger, but nothing has been concretely decided yet."
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