Kakao to Inject Large Sums Into Investment Firm, Overseas Operations

The company said it has decided to inject 70 billion won (US$65.5 million) into Kakao Investment, a wholly owned subsidiary that specializes in capital ventures. (Image: Yonhap)

SEOUL, April 18 (Korea Bizwire) – South Korea’s top mobile messenger operator, Kakao Corp., said Wednesday that it will inject billions of won into its investment firm and overseas operation to generate the best possible synergy going forward.

The company said it has decided to inject 70 billion won (US$65.5 million) into Kakao Investment, a wholly owned subsidiary that specializes in capital ventures.

“The move could lay the foundation for more aggressive investments into innovative companies and bring about the best possible results for Kakao as a whole,” a corporate source said.

In addition, the company said it will invest 79.9 billion won into Kakao Japan Corp., which is actively engaged in content business in the island nation.

The Japanese affiliate has made headway in the area of online comic platforms and has more recently entered the video streaming service market.

Besides these investments, the company said it will hand over the joint operating rights of KakaoPage — its webtoon and Internet social platform – to Podotree. This deal calls for an investment in kind, with Kakaoo getting 100 billion won worth of shares.

The company said that the realignment of KakaoPage will enable the operator of the social platform to make swift and independent decisions that will allow the growth of the business, benefiting all sides.

(Yonhap)