Kakao announced a partnership with Coupang Eats during its Q2 earnings conference call on the 6th, marking the first vertical integration for its agentic AI platform. CEO Jung Shin-ah stated that food delivery will be the initial service connected to Kakao's AI agent, with both companies discussing implementation of agent-to-agent experiences within KakaoTalk that enable transactions. Jung declared that AI infrastructure investment is not Kakao's domain, explaining that the company assessed the business viability of AI data centers, GPUs, and cloud markets but determined its competitive advantage lies in the service layer rather than infrastructure. The strategic pivot reflects Kakao's focus on creating daily-use AI services for the general public while avoiding capital-intensive hardware investments amid rapid generational shifts in GPU and server technology.
Kakao Partners with Coupang Eats for AI-Driven Food Delivery Integration
CEO Jung Shin-ah announced that the first vertical to be linked to Kakao's agentic AI will be food delivery, with the company launching an agent-to-agent partnership with Coupang Eats. Jung stated that both companies are currently discussing multiple aspects to enable AI agent experiences within KakaoTalk to support actual transactions, with plans to implement the service in the near future. Kakao's approach extends beyond simple food ordering functionality — the AI will understand user ordering intent and suggest menus based on accumulated preferences to create new usage habits. The AI service ecosystem starting with delivery will expand to commerce, reservations, travel, and payments. Jung projected that monthly active users encountering AI services within KakaoTalk will exceed 10 million by year-end.
ChatGPT for Kakao Reaches 13 Million Cumulative Users
Kakao's ChatGPT for Kakao service accumulated 13 million registered users as of Q2. The platform records an average of 6 outbound messages per user and an average daily session time of 8 minutes.
CEO Jung Rules Out AI Infrastructure Investment for Kakao
CEO Jung Shin-ah declared that AI infrastructure is not Kakao's domain. Jung stated that the company thoroughly reviewed the business viability of AI data centers, GPUs, cloud markets, and the entire AI value chain, but determined that Kakao's highest competitive advantage in the AI era does not lie in the infrastructure layer. The analysis indicated that hardware equipment such as GPUs and AI servers undergoes very rapid generational turnover, with supply expanding competitively, making it difficult for current high profitability to sustain long-term. Jung explained that the return on investment compared to short-term burden is not sufficiently high. Jung emphasized that rather than allocating significant capital to enter the infrastructure layer in earnest, the company will focus from the model layer to the service layer to create AI services that the entire population uses habitually in daily life, thereby enhancing corporate value.
Kakao Projects AI Revenue to Reach Double-Digit Percentage by 2028
Kakao expects AI-related revenue to materialize in earnest starting in 2028. CFO Shin Jong-hwan stated that by 2028, new revenue generated by AI is projected to account for a double-digit percentage of total Talk Biz revenue. Shin projected that with the addition of AI's revenue contribution to the solid growth of existing advertising and commerce, Kakao's standalone operating margin will improve to a level significantly exceeding 20%.
CFO Shin Forecasts 10% Sales Growth and Operating Margin Achievement
CFO Shin Jong-hwan projected positive performance for the current year. Shin stated that the effect of streamlining non-core businesses will be fully reflected starting in Q3, with Q2-level high profitability continuing solidly into the second half. Shin forecasted that the company will comfortably exceed the annual targets set at the beginning of the year — annual sales growth of over 10% and operating margin achievement of 10%.
FAQ
What partnership did Kakao announce on the 6th?
Kakao announced an agent-to-agent partnership with Coupang Eats during its Q2 earnings conference call on the 6th. CEO Jung Shin-ah stated that food delivery will be the first vertical linked to Kakao's agentic AI, with both companies discussing implementation of AI agent experiences within KakaoTalk that enable transactions.
Why did Kakao decide against AI infrastructure investment?
CEO Jung Shin-ah stated that Kakao assessed the business viability of AI data centers, GPUs, and cloud markets but determined its competitive advantage lies in the service layer rather than infrastructure. Jung explained that hardware equipment undergoes rapid generational turnover with expanding competitive supply, making long-term high profitability difficult to sustain, and that the return on investment compared to short-term burden is not sufficiently high.
What are Kakao's AI revenue projections for 2028?
CFO Shin Jong-hwan stated that by 2028, new revenue generated by AI is projected to account for a double-digit percentage of total Talk Biz revenue. Shin projected that Kakao's standalone operating margin will improve to a level significantly exceeding 20% with AI's revenue contribution added to existing advertising and commerce growth.
