[The Editors' Verdict]KakaoBank and Kanana

Should KakaoBank (Kabang) merge with KakaoTalk (KakaoTalk) or remain separate? This was the dilemma faced by the architects of KakaoBank. Investors argued that since KakaoTalk is an app used by everyone, it would be best to simply add a bank menu button to it. Yoon Ho-young, CEO of KakaoBank, recalled the atmosphere surrounding this issue in private, saying, "It was the most difficult challenge I received from investors."

Considering the power of KakaoTalk, the "national messenger," it is not surprising to question "Why not merge instead of separating?" or to doubt "Can it establish itself outside of KakaoTalk?" However, Yoon believed the story changes when you conceptualize the functions of KakaoTalk and KakaoBank separately.

"KakaoTalk is a plaza where people meet and chat, while KakaoBank is a personal private vault. Would people find it attractive if the vault was placed in the plaza?" Behind the birth of the KakaoBank app, which has a monthly active user (MAU) count of 18 million and features a large black, plump letter 'B' on a yellow background, lies this story.

A similar context is embedded in Kakao's recently unveiled artificial intelligence (AI) service, 'Kanana.' Although it is essentially a messenger like KakaoTalk, the decision was made not to integrate it into KakaoTalk but to release it as a separate app. Regarding this, Lee Sang-ho, Kakao KananaX performance leader, said, "To create new communication, attempts to break existing frameworks are necessary." In other words, 'translation' means creating a second KakaoTalk as an AI messenger that breaks away from KakaoTalk.

Jung Shin-ah, CEO of Kakao, is introducing the new generative artificial intelligence (AI) brand 'Kanana' at the Kakao AI Campus in Yongin-si, Gyeonggi-do on the 22nd. Photo by Kakao

Some view this as a natural choice, considering the costs of overcoming the technical and legal hurdles that would arise if integrated into KakaoTalk. However, it is hard to believe that Kakao gave up solely because of this, given the strong foundation KakaoTalk has acquired. As a result, Kakao deleted a path that could have yielded moderate or even some success. Regardless of the specific technologies applied to Kanana, this alone can be regarded as a formidable challenge. It might be Kakao's destiny to have to step outside of itself.

Will Kanana succeed? Furthermore, will Kakao succeed in new branding led by AI? No one can predict, but there seems to be little room for disagreement that the difficulty level is very high. The reality that AI alone cannot easily claim innovation is the highest barrier. A report from a securities firm stating "It was somewhat lacking to provide novelty" is cynical and mischievous, but hard to deny.

The strategy of first revealing the business outline, then conducting an internal beta test before the final launch is intriguing. However, the audience to be persuaded is not just a few investors but tens of millions of users. The key lies in how well their sensitivities and demands are understood and reproduced during the beta test.

Kakao framed the introduction of Kanana as a presentation of the group's future vision based on AI. Therefore, the success or failure of Kanana inevitably carries implications beyond a single project. This means a big stage has been set. Kakao knows better than anyone where it currently stands in terms of management and business, and how challenging the surrounding environment is. There is a mix of anticipation and concern.