[Photo by Yoo Dae-gil = dbeorlf123@ajunews.com]
SEOUL -- South Korea's web service giant Kakao unveiled an ambitious strategy Tuesday to become a global player by establishing an international blockchain platform or acquiring foreign contents providers by using ample funds and strong support from domestic fans.
Under its new business vision called Kakao 3.0., Kakao plans to maximize synergy through an integration of Kakao services such as e-commerce, online games and online financial services, based on Kakao Talk, the most popular smartphone messenger app in South Korea.
"We will maximize our growth potential through synergy effects and aggressively challenge the global market," co-CEO Joh Su-yong told reporters.
As part of expanding its business abroad, Kakao has established "Ground X", a blockchain subsidiary, in Japan, on March 16. Kakao will try to develop its own blockchain platform this year, Joh said, acknowledging fierce global competition in this field.
"We aim to create a stable blockchain platform which is open to domestic and foreign firms," he said. "We will create Asia's representative platform where anyone can participate and lead the blockchain field by forming a network with IT companies around the world."
However, Joh ruled out ICO (initial coin offering) to establish a cryptocurrency fund. ICO is a fundraising mechanism used by new cryptocurrency ventures to bypasses complicated and regulated capital-raising processes.
He said the web service giant will step up globalization by strengthening its influence in Japan and tap into China and Southeast Asia.
To strengthen its clout abroad, Kakao will acquire foreign contents firms by using a fund raised through the issuance of global depository receipts (GDRs) worth one billion US dollars through Singapore's stock exchange in February.
Kakao has strived to develop technologies related to AI and web service platforms for web cartoons, music and video which Joh said would be a good source of expanding its business abroad. The co-CEO said Kakao will not seek short-term profits to become a respectable company.
Hauled by the popularity of platforms for digital advertisements, e-commerce and other services, Kakao has seen its dramatic growth to become one of the most coveted stocks at home.
