Kakao Grows to Rival Established Conglomerates

Published on 2016/03/27 | Source

Korea's top mobile messenger operator Kakao is set to bulge in size to rival the country's old family-owned conglomerates next month, according to the Fair Trade Commission.

Kakao achieved the feat in just a decade.

The FTC considers a company a conglomerate if the combined assets of its subsidiaries exceed W5 trillion (US$1=W1,160).

As of 2015, 49 privately-owned big businesses including Samsung, Hyundai Motor and SK and 12 public enterprises like KEPCO were classified as conglomerates.

When Kakao merged with search portal Daum in October 2014, its assets rose from W217.2 billion to W2.77 trillion. It continued to grow and acquired talent management agency LOEN Entertainment last year, which is valued at more than W1.8 trillion.

That brought the combined assets of Kakao's 47 affiliates above W5 trillion.

Naver, which ranks first in terms of market capitalization among domestic Internet companies, only has W3.4 trillion worth of assets.