Ryan Moves to Kakao Headquarters... Kakao IX Restructures Business Divisions (Comprehensive)

[Asia Economy, reporter Boo Aeri] Kakao is restructuring the business divisions of Kakao IX to strengthen its competitiveness in the "commerce business."

On August 5, Kakao, Kakao Commerce, and Kakao IX each held board meetings and resolved to split off certain business divisions of Kakao IX and merge them into Kakao and Kakao Commerce, respectively.

Through this spin-off and merger, the retail business previously operated by Kakao IX will be transferred to Kakao Commerce, while the licensing business will be managed by Kakao's headquarters.

Since its spin-off from Kakao in May 2015, Kakao IX has been engaged in the distribution of Kakao Friends character merchandise and the character IP (intellectual property) licensing business. In 2019, its sales increased by 46% year-on-year, establishing itself as a leading character company in Korea.

The retail division, which is responsible for the distribution of Kakao Friends character merchandise, possesses capabilities in IP product development and is building offline hubs in key locations both domestically and internationally.

The retail division of Kakao IX will be merged into Kakao Commerce, which operates differentiated e-commerce platforms such as Gift, Shopping, and Makers. Kakao Commerce recorded sales of 296.1 billion won and operating profit of 75.7 billion won last year, and in the first quarter of this year, its total transaction volume increased by 55% compared to the same period last year, demonstrating rapid growth.

Kakao Commerce plans to further expand its commerce business by combining Kakao IX's capabilities in character product development across various aspects of daily life with its offline channels.

For example, differentiated Kakao Friends gift products will be offered through the Gift platform, and on Kakao Makers, customers will be able to directly order and produce character merchandise in their desired designs. Various synergy strategies that leverage the unique characteristics of Kakao Commerce's channels are being considered. The company also plans to further expand new businesses such as the D2C (Direct to Consumer) model, which involves collaborating with promising domestic companies to plan, produce, and distribute products from start to finish.

The licensing division, which is responsible for IP licensing product partnerships and development at Kakao IX, will be managed by Kakao. As Kakao holds the character IPs for Kakao Friends and Ninizz, the company plans to enhance the value of Kakao IP through systematic branding and to expand the Kakao community's IP business in various directions.

A Kakao representative stated, "This is a strategic decision to maximize business synergy within the Kakao community," adding, "We will strengthen our business competitiveness while providing users with differentiated value and experiences by leveraging Kakao's diverse IPs and platforms."