FedEx Beats Q2 Earnings Expectations, Raises Full-Year Outlook Despite Stock Dip 
Niigata Set to Approve Restart of Japan’s Largest Nuclear Power Plant in Major Energy Shift 
Citi Appoints Ryan Ellis as Head of Markets Sales for Australia and New Zealand 
Nike Shares Slide as Margins Fall Again Amid China Slump and Costly Turnaround 
Maersk Vessel Successfully Transits Red Sea After Nearly Two Years Amid Ongoing Security Concerns 
Harris Associates Open to Revised Paramount Skydance Bid for Warner Bros Discovery 
Volaris and Viva Agree to Merge, Creating Mexico’s Largest Low-Cost Airline Group 
Oracle Stock Slides After Blue Owl Exit Report, Company Says Michigan Data Center Talks Remain on Track 
U.S. Lawmakers Urge Pentagon to Blacklist More Chinese Tech Firms Over Military Ties 
TikTok U.S. Deal Advances as ByteDance Signs Binding Joint Venture Agreement 
Oracle Stock Surges After Hours on TikTok Deal Optimism and OpenAI Fundraising Buzz 
Elliott Management Takes $1 Billion Stake in Lululemon, Pushes for Leadership Change 
Trump Administration Reviews Nvidia H200 Chip Sales to China, Marking Major Shift in U.S. AI Export Policy 
Roche CEO Warns US Drug Price Deals Could Raise Costs of New Medicines in Switzerland 
FDA Fast-Tracks Approval of Altria’s on! PLUS Nicotine Pouches Under New Pilot Program 
Elon Musk Wins Reinstatement of Historic Tesla Pay Package After Delaware Supreme Court Ruling 
South Korea's Kakao is capitalizing on the aggressive expansion of Chinese e-commerce platforms like AliExpress, Temu, and Shein, registering significant growth in advertising revenue.
During a recent conference call on its first-quarter earnings, Kakao CEO Chung Shin-a highlighted the substantial advertising fees paid by these Chinese companies as a key driver behind the surge in Kakao's advertising business.
According to Korea Times, revenue from this segment rose 10% year-on-year to 279 billion won ($204 million), with total revenue for the quarter reaching 2 trillion won, a 22% increase from the previous year.
Operating Profits and Strategic Moves
Kakao's operating profit saw a dramatic 92% jump year-on-year to 120 billion won, buoyed partly by its acquisition of SM Entertainment in the second quarter of 2023.
Despite the success, CEO Chung maintains a cautious stance regarding the potential decrease in advertising fees from Korean e-commerce companies but dismisses concerns about the Chinese e-commerce platforms affecting Kakao's commerce operations.
Focus on Corporate Governance and AI Development
In response to ongoing investigations into alleged irregularities involving Kakao and its executives, Chung pledged continued efforts to reform its corporate governance structure, linking executive compensation to shareholder value enhancement.
Additionally, addressing concerns over the delayed launch of its anticipated AI services, including the large language model KoGPT 2.0, Kakao aims to accelerate development by acquiring AI-specialist subsidiary Kakao Brain.
This strategic move involves integrating cutting-edge services with its KakaoTalk mobile messenger app, albeit cautiously, to avoid compromising financial stability or profitability.
Market Impact and Competitive Landscape
Jing Daily reported that the entry of Chinese e-commerce giants has intensified competition in South Korea's online retail sector. According to BC Card, payment data from October 2023 to March 2024 shows a staggering 138% increase in total payments on Chinese e-commerce platforms, contrasting with a slight decline in transactions for South Korean e-commerce brands.
This dynamic signals a shift in consumer preferences. It challenges local giants such as Coupang, Naver, and Tmon, highlighting the rapidly evolving nature of South Korea's digital marketplace.
Photo: Kakao Corp Newsroom
