“With differentiated core competitiveness of Kakao and Daum, we will lead the mobile age and the next age after the mobile age. For it, we will expand our influential power not only in the domestic market but in the global market.”
“The new Daum Kakao will grow as a lifestyle service platform provider putting together the IT mobile, communications and information sectors in both on and offline through synergy effects of Kakao’s strength in mobile platform and desktop computer-based know-how of Daum.”
Lee Sir-goo, CEO of Kakao, at the shareholders’ meeting for the merger with Daum
Lee Sir-goo, CEO of Kakao
SEOUL, Aug. 28 (Korea Bizwire) – Daum and Kakao held their respective shareholders’ meetings on August 27 and approved the merger proposal signed last March. The integrated Daum Kakao will officially launch on October 1.
With their merge, the new IT giant is expected to have fierce competition with Naver to take the commanding height in the mobile sector. In the meeting, Lee Sir-goo, CEO of Kakao, showed his vision of the new company growing as an information and lifestyle service platform provider.
Currently, Kakao plans new services including Kakao Taxi and BankWallet as the lifestyle service platform. Kakao will roll out its Kakao Simple Payment and BankWallet Kakao services next month. Also, it is considering a mobile call taxi service like Uber.
Market observers see the integrated Daum Kakao will show the synergy effect as early as in 2015. A stock analyst said, “Thanks to the new businesses, Kakao will create new cash sources. Considering the influential power in Korea, its businesses have high potentials.”
However, it doesn’t only have rosy prospects. Most of all, it should catch up with Naver in the Internet search engine market. Last July, Daum fell behind the 20 percent share in the market with 19.89 percent, while Naver secures 76.99 percent share in the market.
Besides, it will be a challenge for the new company to bind the different chemistries of Daum and Kakao. The two companies have been working on the matter with nine task forces for the merger. They decided to call English names among staff members as Kakao is doing and use Daum’s Hanmail addresses for their office communication.
Still, it has many things to decide before the official launching like the place of headquarters, calling titles, new corporate identity and so on. It is expected that the chemical integration of the two companies’ different cultures will be the key to maximize its capabilities to be the top IT company in Korea.
By John Choi (johnchoi@koreabizwire.com)
