Even though Daum Communications has not beated its biggest competitor, Naver, when it comes to Korean portal site, Kakao Talk seems that no one could catch up with it. Kakao talk - Korean simply call it Katalk- is a free mobile messaging applicationused by almost 95% of South Korean.  My father is not a tech person but he is even using it. Not only Korean but 170 millions people around the world are currently users,  as the application offer 15 languages. Although Naver, the eternal rival of Kakao, also released a similar application named Line, it seems to be hard to increase a market share in South Korea.  

Kakao Talk has featured several services by using its great platform because it wants to be more than a mere messaging application. One of famous service is a gifting service that enables users buy gifts, commonly a Starbuck coffee, and send it their friends via the messenger. Actually, this service is so useful; Me and friends of mine are often using it to show our gratitude. Additionally, the company features other services for advertisement or game via its platform. 

Let us look at its stock price now. Despite of its great platform, the share price of Kakao has consistently declined till now. Why so? I think there are largely two reasons.

First of all, Kakao have a difficulties in creating a new profit model. For example, after Kakao had merged Kimkisa, a navigation company, it launched Kakao Taxi service, and Kakao Drivers. However, monetizing of the free platform looks quite difficult that expected although Kakao taxi has been successfully introduced to many users. Other similar services produced by Kakao are still in trouble in making reasonable profits. But you know what? The platform-related business is just at the starting point. We don't know how it comes in the even near future so I will keep my eyes on it.

Second, as Kakao ceased cooperating with the execution of eavesdropping, the current government pushed the company in the negative ways. The corporation has gotten disadvantages so far. Watching the current political situation, I believethat the ruling party will be definitely changed next year. So, let's see what happens to Kakao later. 

It is great to see how Kakao expands their character business. I really love Kakao emoji like other Korean. To decorate my new 2017 planner, I got several Kakao emoji-related stickers recently- they are super cute.


Go KOSPI!

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Please note not to take my personal opinion as a professional one. I am just a newbie investor who loves to introduce Korean companies to foreigners. That's it!