Kakao spins off e-commerce unit

South Korean mobile messaging platform Kakao is spinning off its e-commerce unit for further expansion.

The new organisation will be Kakao’s largest spin-off, worth about KRW510.3 billion (US$458.6 million) by December. It will take over the operation of the Kakao Gifts, Shopping, Kakao Style and Kakao Farmer services.

Kakao has also made plans to acquire global e-commerce firms and has expressed being open to securing additional funds through its spin-off.

A spokesperson for the company said: “We are indeed open to securing additional investments after the process is completed. But at the moment we do not have any specific plans.”

Kakao’s e-commerce business is weak in comparison with industry leader Naver, achieving only one seventh of the sales of its competitor. Its messenger service, conversely, remains dominant in its market.

Comments

Comment Manually

Inside Retail Polls

Hong Kong retail sales in 2018
Will Hong Kong's retail rebound continue?
x

SUBSCRIBE
FREE NEWS BRIEFS Get breaking news delivered