0610-Kakao eyes overseas expansion

Kakao, the operator of the nation’s most popular mobile messenger Kakao Talk, is gearing up to expand its presence overseas, given that the domestic market is already saturated.

According to latest data, more than 95 million people are using Kakao Talk, with an increasing number of Southeast Asians using the service.

With this momentum, Kakao Talk is expected to hit 100 million users in July, in the light of its recent record of gaining on average 10 million new users over the last three to four months.

“The number is increasing fast in Asian countries. We are putting much effort in marketing to expand our share mainly in four target countries: Japan, Indonesia, Vietnam and Malaysia,” said Kakao official Elin Lee.

It took three and half years for the company to reach 100 million users, aggressively raising its user numbers by 25 million between December 2012 and June 2013.

“We have a vision of becoming a platform provider for firms across the globe. The firm has business alliances with Friendster, a social game and networking firm headquartered in Malaysia, and plans to enter the market there. We expect this move will help spread our platform to other prominent markets in the world,” Lee said.

The official said it is expanding business partnerships with local firms too, especially those in the gaming business. It is possible to export the content through its platform by allying with Kakao Talk.

About 42 games are available in four countries through the messaging platform. Anipang, a popular mobile game in Korea, is an example of gaming that can be accessed through Kakao Talk’s platform, according to the firm.

While Kakao looks to expand its reach, other instant messenger companies are trying to do the same.

WeChat, a text and voice communication messenger with 30 million users worldwide, is trying to satisfy customers with new upgrades in smartphone technology. Most of WeChat’s users are from China, but the company added about 50 million users within a year of its overseas launch in March 2012. It is also expanding its share in the United Arab Emirates.

Similarly, Whatsapp has reportedly over 30 million users globally, and is rumored to be in talks for a possible takeover by either Google or Tencent Investment holdings.

“Whatsapp dominated the market in North America and Europe, as Wechat did in China and East Asia. Korean messengers can compete in other potential countries that other messengers have not yet penetrated, such as in Southeast Asian countries,” said Hong Jong-gil, an analyst at Korea Investment and Securities.