Kakao (035720.KS) is launching "Kakao Membership," a program that bundles services from its major affiliates into a single subscription. The plan is to build a "daily-life economy platform" spanning commerce, reservations, payments and entertainment, all anchored on KakaoTalk, the messaging app used by nearly all South Koreans.
Kakao is preparing to release a beta version of Kakao Membership next month, centered on its newly established unit Kakao AI, according to IT industry sources on the 2nd. A Kakao official said the company is preparing a membership program that links various services and benefits, adding that the specific launch date and details have not yet been determined.
The membership is expected to charge a monthly subscription fee in exchange for discounts and reward points on major Kakao services. The group has ample in-house content to draw on. Kakao already operates its own paid subscription products, including KakaoTalk offerings such as emoticons and Talk Drawer, as well as Kakao Mobility's Kakao T Members.
Beyond those existing subscription models, the industry expects the membership to cover consumer-facing services across the group, including Kakao Entertainment units Melon, Kakao Webtoon and KakaoPage, along with Kakao Pay, Kakao Shopping, Kakao Style's Zigzag and screen golf operator Kakao VX. Tie-ups with outside platforms are also possible, such as Coupang Eats, with which Kakao recently formed a partnership.
Bundling disparate services into a single membership is no simple task, however. Music and webtoons involve copyright revenue-sharing arrangements, which complicates the profit calculations when they are folded into a membership. That was also why an earlier attempt by Kakao, pursued through a task force, fell through.
The company must also clear high barriers to entry as a late arrival. South Korea's paid lifestyle membership market is currently split between Naver, with Naver Plus, and Coupang, with its Wow membership.
An industry official said Kakao Membership already holds an advantage in acquiring users because it is built on KakaoTalk, which the entire population uses. If it secures differentiated benefits and competitive pricing, the official said, it could grow into a service that threatens existing players in the market.
