KKakao Pay is a mobile financial service that enables payments, transfers, and funds management within Kakao’s apps. It links a user’s payment methods to KakaoTalk and other Kakao apps, supporting in-app purchases, QR and barcode payments, and peer-to-peer transfers. The service is tightly integrated with Kakao’s mobile life platform, using the same account across messaging, mobility, and media to make payments part of everyday activities. Its goal is to simplify payments inside Kakao’s ecosystem, expand financial offerings, and support user experience and ESG initiatives.
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Company Size
1,001-5,000
Company Stage
IPO
Headquarters
Jeju, South Korea
Founded
2010
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Kakao stocks rise 9.68% on $108M buyback despite target price cuts. 2026-11-07 04:37:00 Key takeaways. * Kakao rose 9.68% this week after announcing on Nov. 5 a $108 million treasury-share cancellation and Q3 earnings release. * According to FnGuide, Kakao's average target price fell to 46,682 won, down 42.37% from 81,000 won, as ten brokerages cited AI revenue generation concerns. * Kakao will launch Kanana Space AI pilot next month and aims to reach AI business break-even by 2028. Kakao rose 9.68% this week after announcing on Nov. 5 that it will cancel $108 million worth of treasury shares, closing at 32,300 won on Nov. 6 despite a broader market selloff that saw the Kospi fall 11.71%. The stock gained 10.65% on Nov. 5 alone following the buyback announcement and third-quarter earnings release showing consolidated revenue of $1.50 billion, up 6% year-over-year, and operating profit of $173 million, up 7%. Ten securities firms cut Kakao's target price this week, with the average target falling to 46,682 won - down 42.37% from 81,000 won - as analysts cited the need for Kakao to prove its artificial intelligence business can generate revenue. Kakao gains 9.68% this week on $108 million treasury-share cancellation. According to the Korea Exchange, Kakao closed at 32,300 won on Nov. 6, up 100 won, or 0.31%, from the previous session. While the Kospi fell 11.71% this week, Kakao gained 9.68%. The shares surged 10.65% on Nov. 5 alone, when the company announced earnings and its treasury-share cancellation plan. Kakao said on Nov. 5 that it will buy back $108 million worth of treasury shares and cancel all of them. The company plans to split in February next year into Kakao X, the surviving entity that will handle investments and subsidiary management, and Kakao AI, a newly created company that will oversee KakaoTalk-based AI operations. The latest cancellation brings forward half of a $216 million plan that Kakao X had intended to carry out after the split. Kakao reports Q3 revenue of $1.50 billion and 16% platform growth. Third-quarter consolidated revenue rose 6% from a year earlier to $1.50 billion. Operating profit climbed 7% to $173 million. Revenue from the core platform unit increased 16% to $889 million. Display advertising revenue and commerce gross merchandise value rose 35% and 13%, respectively. Standalone operating profit advanced 17% to $84.8 million. Third-quarter operating profit missed the market forecast of $179 million by 3.2%. Platform revenue rose 17%, while content revenue fell 6%. The AI services unit posted an operating loss of $46.1 million, widening by $13.0 million from a year earlier. Kakao to launch Kanana Space AI pilot next month. Kakao will begin a pilot of "Kanana Space," an AI service based on KakaoTalk, next month. The service is designed to connect KakaoTalk's internal functions with outside services through AI. Kakao also said it aims to secure 10 million monthly active users for its AI service by year-end and reach break-even in the AI business by 2028. Ten brokerages cut Kakao target prices citing AI monetization concerns. Ten securities firms cut Kakao's target price this week. Meritz Securities lowered its fair value estimate to 36,000 won, while DAOL Investment & Securities cut its target price to 40,000 won. The average target price compiled by FnGuide, a financial data provider, fell to 46,682 won, down 42.37% from 81,000 won at the time of forecasts for fourth-quarter results last year. Jeong Eui-hoon, an analyst at Eugene Investment & Securities, said he lowered his target price-to-earnings ratio to 25 times from 30 times to reflect a delay in the timing of validation for agentic AI monetization. Ko Jun-hyuk, an analyst at Shinhan Securities, said growth driven by new ad inventory and an influx of small and midsize advertisers is positive, but the stock's direction will depend entirely on Kanana Space. Lee Hyo-jin, an analyst at Meritz Securities, said part of the money concentrated in semiconductor stocks over the past two years appears to be rotating back. Kim So-hye, an analyst at Hanwha Investment & Securities, said that at the current depressed share-price level, investors should focus less on short-term volatility tied to AI agent business results and more on whether increased AI investment and stronger shareholder returns after the split translate into management performance over the medium to long term. Faq. What did Kakao announce on Nov. 5? Kakao announced on Nov. 5 that it will buy back and cancel $108 million worth of treasury shares. The company also released third-quarter earnings showing consolidated revenue of $1.50 billion, up 6% year-over-year, and operating profit of $173 million, up 7%. Why did brokerages cut Kakao's target prices this week? Ten securities firms cut Kakao's target price this week, with the average falling to 46,682 won from 81,000 won. Analysts cited the need for Kakao to prove its AI business can generate revenue, as the AI services unit posted an operating loss of $46.1 million in Q3, widening by $13.0 million from a year earlier. When will Kakao launch its Kanana Space AI service? Kakao will begin a pilot of Kanana Space, an AI service based on KakaoTalk, next month. The service is designed to connect KakaoTalk's internal functions with outside services through AI. Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Kakao reported third-quarter 2026 revenue of KRW 2,086.7 billion, up 6% year on year and down 1% from the previous quarter. Operating profit rose 7% to KRW 240.3 billion, a 12% margin, while net income was KRW 177.7 billion. Platform revenue grew 17% to KRW 1,235 billion; content revenue fell 6% to KRW 851.7 billion. The company announced a KRW 150 billion share buyback and cancellation. Kakao plans a December pilot of Kanana Space, an AI agent layer inside KakaoTalk that can handle tasks such as money transfers. It aims for 10 million monthly active AI users by the end of 2026, and expects new AI revenue to reach a double-digit percentage of Talk Biz revenue by 2028.
South korea's Kakao open-sources two Kanana-2 embedding models on Hugging Face. Asia Today Published Oct 29, 2026 · 12:41 AM South Korean technology company Kakao has released two open-source AI embedding models, Kanana-2-3b-embedding and Kanana-2-1.3b-embedding, to enhance semantic search and personalized AI agents. Developed by the firm's Unified Foundation Model team, the models are based on Kakao's proprietary small language model architecture and are available on Hugging Face under the Kanana Open License for research and commercial use. According to internal evaluations, the models achieved top retrieval performance in Korean and competitive English performance while significantly reducing inference latency and memory requirements. South Korean technology company Kakao announced on October 29, 2026, the open-source release of two artificial intelligence embedding models designed to enhance semantic search and power personalized AI agents, according to reporting by Asia Today. The two models, named Kanana-2-3b-embedding and Kanana-2-1.3b-embedding, feature 3 billion and 1.3 billion parameters respectively, and have been made available globally through the machine learning platform Hugging Face. Developed by Kakao's Unified Foundation Model team, the models convert text into numerical representations to evaluate semantic similarity between queries and stored information. Unlike conventional generative language models that synthesize answers directly, embedding models enable systems to identify and retrieve relevant documents or past interactions even when exact matching keywords are absent. To create the suite, Kakao adapted its proprietary small language model, Kanana-2-SLM, to information retrieval tasks for the 3-billion-parameter version, and then applied knowledge distillation to compress that capability into the smaller 1.3-billion-parameter model. Kakao also integrated Matryoshka Representation Learning (MRL), an architectural technique allowing engineers to adjust embedding vector sizes to balance search precision against storage and processing constraints. Background: The release reflects an ongoing push by regional technology companies to build specialized infrastructure for retrieval-augmented generation (RAG) and domain-specific AI agents. Large generative language models frequently struggle with factual grounding and high inference costs unless paired with efficient vector search systems that can parse local languages accurately. In non-English computational ecosystems, standard international embedding models have historically exhibited lower accuracy on regional vocabulary, idioms, and morphological structures. Background: Kakao had previously developed an initial series of Kanana embedding models to power its own ecosystem services, but enterprise demand for faster, lower-cost retrieval tools prompted further architectural refinements. According to the company, these newly optimized models achieve efficiency gains of several dozen times or more in inference speed and memory footprint compared to the previous Kanana generation. The models are distributed under the Kanana Open License, which permits both research and commercial applications subject to its specific terms. In internal benchmark evaluations reported by Kakao, the two models achieved the highest Korean-language retrieval performance among similarly sized open-source alternatives, while maintaining comparable performance in English. Kakao tested the models against open-weight baselines including llama-nemotron-embed-1b-v2 and Qwen3-Embedding-4B, noting that its models also achieved higher inference efficiency than Qwen3-Embedding. Roh Byung-seok, performance leader of Kakao's Unified Foundation Model team, emphasized that effective AI agents depend heavily on accurate retrieval across fragmented sources rather than just conversational fluency, adding that the company will support the adoption of Korean-optimized embedding technology across various applications. Moving forward, Kakao expects third-party developers, domestic enterprises, and global researchers to integrate the models into personalized AI agents and semantic search services. The company stated that it will continue research into embedding technologies with strengths in Korean across various service domains. Why it matters The release provides developers and enterprises with specialized, resource-efficient embedding models that lower the hardware barrier for deploying retrieval-augmented generation in non-English contexts. For small and medium-sized enterprises and organizations with limited compute resources, the models' support for vector size scaling via Matryoshka Representation Learning can reduce storage and inference costs for local semantic search. Additionally, open access to high-performing Korean and English embeddings helps diminish reliance on proprietary closed-source API providers for enterprise knowledge retrieval. AI Industry Analyst Editorial Analysis More AI news. 1035 opinions
Kakao's new AI assistant can reorder your groceries, manage schedules from chats. The company will launch Kanana Space, an AI assistant in KakaoTalk that can manage schedules, send messages, search chats and reorder products with user approval. Published October 13, 2026 - 6:25 p.m. Kakao will release an AI assistant inside its messenger app that helps users manage schedules arranged in chats and buy products. The move is part of Kakao's push to bring AI into KakaoTalk, which has about 50 million users. Kakao added OpenAI's ChatGPT to the app last year under a partnership with the U.S. company. "We are building the optimal experience for each individual with agentic AI services," Kakao CEO Chung Shin-a said at ifkakao26, this year's edition of the company's annual conference, in Yongin, Gyeonggi, on Tuesday. The service, called Kanana Space, can be called up anywhere in KakaoTalk with a two-finger swipe. Users can ask it by voice or text to send messages, manage schedules, search the web and change KakaoTalk settings. Kakao's mascot Ryan will be the first character to serve as the assistant, followed by other characters from the company's intellectual property. In a demo, a user asked the assistant to reorder what they had bought the previous week, without saying what it was. The assistant searched the user's chats, identified bottled water in a brand the user regularly orders, applied available coupons and prepared the order through to payment. Kakao said this works because it also runs its own e-commerce and e-wallet platforms. The assistant can also pull up requests that other people have made to the user in their chats. Users still have to approve final actions such as sending messages or making payments. A closed beta will begin in December, and Kakao plans to launch the service next year. Kakao is also building AI models to support it. Under its Kanana line, simple requests go to smaller models, including ones that run directly on the smartphone making the request, while harder tasks go to larger server-based models. A system called AI Conductor picks the model and tools for each request to keep costs down. Among the models developed in-house is Kanana-o, a multimodal model that understands text, images and voice and responds by voice. Kakao is also developing Kanana Live, a technology that listens and speaks at the same time, which it used in a demo of real-time Korean-to-English interpretation. It will also offer Kanvas, a PC service for building and running personal agents, with a closed beta as early as this year. BY LEE JAE-LIM [[email protected]]
Kakao bets on AI agents to take it beyond messaging. Published: Oct. 13, 2026 - 14:33:03 Jie Ye-eun Since 2018, I have covered South Korea's economic and financial landscape, with experience spanning the economy, banking, financial markets and securities industry. My current beat focuses on Korea's major chaebol groups and technology industry, including Samsung, SK and LG, as well as global technology companies operating in Korea such as Apple, Google and OpenAI. Key areas of coverage include corporate leadership and strategy, semiconductors, artificial intelligence, devices and consumer electronics, digital platforms and displays. Coverage also extends to the Ministry of Science and ICT, the Korea Fair Trade Commission, the Korea Communications Commission and the Korea AeroSpace Administration, focusing on technology policy and regulation, AI, the semiconductor industry and the broader evolution of Korea's technology ecosystem. Kakao on Tuesday unveiled an artificial intelligence assistant for its flagship messaging app KakaoTalk as part of a broader push to transform the service into a platform that can handle everyday tasks, from schedule management to shopping and making reservations. "We want to move from graphical interfaces, where people have to find and tap menus, to language-based interfaces, where they can express what they want and get things done quickly," CEO Chung Shin-a said Tuesday at the company's annual developers conference, "if(kakao) 2026," held in Yongin, Gyeonggi Province. The centerpiece is Kanana Space, an assistant users can summon from anywhere in KakaoTalk with a two-finger swipe. Kakao's Ryan character appears to take voice requests for tasks including sending messages, managing schedules, searching the web and changing app settings. Users can also type requests or use a floating button to open the assistant. In live demonstrations, Kanana Space recommended what to wear for a morning run based on the weather and past exercise records. It also suggested when a parent should leave to pick up a child using information from a family group chat, marked messages as read and muted notifications on command. "Rather than adding a separate tab or screen, we designed it as an AI layer that can be opened anywhere without disrupting how people already use KakaoTalk," said Kim Dannion, head of design at the company. Kakao plans to expand the assistant to shopping, sending gifts, making reservations and transferring money. Payments and outgoing messages will require final user approval, the company said. Preregistration opened Tuesday ahead of a closed beta test scheduled to begin in December. The company also unveiled Kanvas, a desktop service that lets users build teams of AI agents by describing the work they want done. A closed beta test is planned as early as this year, with access to the agents through KakaoTalk targeted for the first half of 2027. Kakao also plans to support agents built using outside frameworks. Behind the services is Kanana, Kakao's family of in-house AI models. Its AI Conductor system breaks requests into tasks and selects the appropriate models and tools, using smaller on-device models where possible and more powerful server-based models for demanding work. "Our principle is to deliver the best possible result for every request, but not to use the largest model for every request," said Roh Byung-seok, who oversees Kakao's foundation model development. Kakao is also developing Project Mosaic to help different agents draw on relevant information from users' past interactions and work together. The company said information sharing and AI-driven actions would remain within users' consent, backed by additional safety checks. "The standard for evaluating generative AI is shifting from giving good answers to completing the tasks users ask for," Chung said. [email protected]
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Industries
Company Size
1,001-5,000
Company Stage
IPO
Headquarters
Jeju, South Korea
Founded
2010
Find jobs on Simplify and start your career today
We update Kakao Pay's jobs every few hours, so check again soon!Browse all jobs