Kakao Friends Gangnam Store Closing Decision... "Efficient Retail Operation"

Kakao's first offline permanent store, Kakao Friends Gangnam Flagship Store, is closing down.

According to industry sources on the 6th, the Kakao Friends Gangnam Flagship Store is scheduled to close on the 19th.

The store opened in July 2016 as a permanent location. Kakao Friends, a spin-off from Kakao responsible for the character business, has been operating the offline store. It gained attention with the continuous release of popular characters and collaborated with popular intellectual properties (IP) such as Harry Potter and the Netflix series Squid Game Season 2.

However, due to operational efficiency and the consumption pattern focused on online shopping, the decision to close the store was made. Kakao Friends plans to strengthen brand experience centered around the Hongdae Flagship Store.

A Kakao representative stated, "We decided to close the store to adapt to changes in the business environment and to operate retail more efficiently," adding, "We plan to explore additional locations in Seoul and the metropolitan area to expand consumer touchpoints."