From KakaoTalk to Facebook and Instagram... "Grab the Big Spenders of Contactless Shopping"

Kakao 'KakaoTalk' - SKT '11st' Collaboration Underway
'Facebook Shops' Also Launching in Korea

[Asia Economy Reporter Jin-gyu Lee] IT platforms from KakaoTalk (KakaoTalk) to Facebook are continuously competing to attract major players in contactless (untact) shopping. As demand for contactless shopping increases due to the impact of the novel coronavirus infection (COVID-19), the e-commerce market is also rapidly growing.

According to the IT industry on the 27th, Kakao and SK Telecom are testing a method to allow direct access from KakaoTalk to SK Telecom's shopping mall '11st'. Recently, a button to access the 11st website or application was created in the 'More' tab for some KakaoTalk users.

Kakao has been operating commerce businesses such as 'Shopping', 'Gift', and 'Makers' on KakaoTalk, and this time it is adding the 11st service. This is the first time a third-party service has been introduced on KakaoTalk.

The service is randomly exposed to some KakaoTalk users. Users can sign up and log in to 11st with their KakaoTalk ID. Also, payments for product purchases can be made via KakaoPay. Kakao stated, "We are conducting tests by adding 11st to the KakaoTalk menu," and "After evaluating usability for a certain period, we will decide whether to continue displaying 11st."

Earlier, Kakao and SK Telecom exchanged shares worth 300 billion KRW in October last year and established a strategic partnership, promoting cooperation in various fields. Kakao co-CEO Young-min Yeo said in February, "We have opened up various possibilities and cooperated in business areas such as mobile communications, commerce, content, mobility, and artificial intelligence (AI)," adding, "Among them, the commerce business sector will materialize the fastest."

Facebook, which has 20 million domestic users, recently launched the free online store creation service 'Facebook Shops' in Korea to attract online shoppers. After first launching Facebook Shops last month in the US and some European countries, it expanded to eight Asia-Pacific countries including Korea.

All users, including small business owners, can create their own digital stores for free on Facebook and Instagram through Facebook Shops, directly promoting and selling their products. Shops created on Facebook pages are also directly linked to Instagram. An industry insider said, "Since users in their 20s and 30s frequently use Instagram, their demand may shift from existing online shopping to this."