Sales and profits doubled! Kakao Commerce sales exceeded 500 billion won

Kakao Commerce announced in its audit report on April 5 that it had sales of 573 billion won and operating profit of 159.5 billion won last year, according to Chosun Ilbo. This is an increase of 94% and 110% respectively compared to sales of 296.1 billion won and operating profit of 77.5 billion won in 2019 .

As a subsidiary of South Korean Internet giant Kakao, Kakao Commerce is a company specializing in e-commerce businesses based on the Kakao Talk platform, such as "Kakao Talk Gifts," "Kakao Talk Shopping," and "Kakao Style" in Kakao Talk . In October last year, it merged the retail business unit of Kakao IX, which included the distribution of Kakao Friends character products.

Kakao is one of the largest companies in South Korea with numerous branches , but Kakao Commerce is still the subsidiary with the best sales and profits .

According to the latest data released on the 6th by the electronic disclosure system of the Financial Supervisory Service of Korea , Kakao Commerce ranked first among Kakao -related companies with sales of 573 billion won last year, accounting for about 21% of the total sales of 2.67 trillion won of Kakao's main subsidiaries . Net profit also reached 123 billion won, accounting for 62% of the total net profit of 198 billion won of subsidiaries.

Kakao Commerce's strength is that it owns Korea's top-level Kakao Talk platform, which is completely different from Naver , which is mainly an online shopping mall , and Coupang , which has an overwhelming logistics system for delivery .

The representative service that takes advantage of Kakao Commerce is "gifting". Last year, it achieved rapid growth due to the coronavirus . As the non-face-to-face culture spreads, gifting has become a major means of conveying thoughts to family members and relatives.

According to estimates from the distribution industry , the size of South Korea’s gift-giving market was estimated at about 3.5 trillion won last year , of which Kakao alone accounted for 1.3% of the total.   Gift transactions on Talk alone amounted to 3 trillion won. Last year, gift sales increased by 52% year-on-year . As of December last year , 21.73 million people gave gifts .

Kakao Commerce plans to focus on strengthening its main services this year. In other words, rather than launching new businesses, it is better to enhance existing services, such as diversifying products and increasing user inflow . In the future, Kakao Commerce also plans to add categories such as various daily necessities or home appliances.

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