Kakao injects cash into its investment business

Kakao, the operator of Korea’s top mobile messenger app, said Wednesday that it will inject billions of won into its investment firm and overseas operations.

The company said it has decided to put 70 billion won ($66 million) into Kakao Investment, its wholly owned subsidiary that specializes in capital ventures.

“The move could lay the foundation for more aggressive investments into innovative companies and bring about the best possible results for Kakao as a whole,” a corporate source said.

In addition, the company said it will invest 79.9 billion won into Kakao Japan, which is actively engaged in content businesses in the neighboring country.

The Japanese affiliate made headway with its online comic platform and has more recently entered the video streaming service market.

Besides these investments, the company said it will hand over the joint operating rights of KakaoPage, its web comic and internet social platform, to Podotree. This deal calls for an investment in kind, and Kakao will receive 100 billion won worth of shares.

The company said that the realignment of KakaoPage will enable the operator of the social platform to make swift and independent decisions that will allow the business to grow, benefiting all sides.

Yonhap