What Will the IT Industry Look Like in 10 Years According to Naver and Kakao CEOs?

Han Seong-sook, CEO of Naver "Will Become the Foundation of All Industries"

Yeo Min-soo, Co-CEO of Kakao "Subscription Economy"

These are the answers given by the CEOs of Korea's two major portals, Naver and Kakao, when asked about the future of the IT industry.

The Korea Internet Corporations Association (KICA) is celebrating its 20th anniversary by releasing interviews with prominent figures representing the internet industry. Following CEO Han's interview on the 9th, Co-CEO Yeo's interview was posted on the 10th.

In the interview, CEO Han stated about changes in the IT industry over the next 10 to 20 years, "Until now, the internet was a newly emerging innovative industry, a field for unique and 'geeky' people, but now IT seems to have entered a stage where it becomes the foundation of all industries."

She added, "Afterwards, the distinction called the internet industry itself will disappear," and predicted, "It will become a form where various industries coexist with the internet and IT as the basics."

Co-CEO Yeo explained, "'Subscription economy' and 'content,'" adding, "The subscription economy is expanding globally in terms of industry scale."

He continued, "Efforts to turn all fields, including 'old economy' sectors like automobiles and home appliances, into subscription models are ongoing. The subscription economy occurring in actual companies seems to be quite active."

He further noted, "Recently, with the COVID-19 situation, content consumption such as Netflix, Piccoma, and KakaoPage has grown," adding, "Web novels, webtoons, and dramas and movies based on these IPs (intellectual property rights) are expanding, and global interest in K-content is focused, creating a foundation for further growth."

When asked about each company's direction, CEO Han said, "Naver has been considering what services various businesses and users need," and revealed, "Recently, we have been focusing on creating tools to help SMEs (small and medium-sized enterprises) successfully undergo digital transformation."

Co-CEO Yeo cited examples such as Daum's abolition of celebrity comments and real-time search rankings, saying, "Over the past 10 years, Kakao has achieved innovation by fearlessly taking paths not yet traveled and continuously challenging itself," and added, "In Season 2, we will strive to connect Kakao's uniqueness to social value."

Co-CEO Yeo also stated, "A key issue we are considering is Kakao's globalization." Compared to Naver, which is active overseas in the U.S., Japan, and other countries, Kakao has not yet shone as brightly abroad as it has domestically. Kakao, entering Season 2, is interpreted as expressing its determination to achieve results globally in the future.