Kakao says its AI rollout fell short of expectations and announces a 150 billion won buyback
Third-quarter operating profit rose 15.5% to 240.3 billion won, Yonhap reports; the company will pilot its Kanana Space AI assistant in December, but has not said how many users it expects.
Why it matters
Kakao runs KakaoTalk, South Korea's dominant messenger, which makes it one of the country's main routes for putting AI assistants in front of consumers. Chief executive Chung Shin-a said the company humbly accepts that its AI services expanded more slowly than the market expected, and that it will concentrate all resources on AI. Sales were flat at 2.08 trillion won while the platform business grew 17%. The buyback lands on a day when Korean tech shares were already falling. Watch the Kanana Space pilot in December and the formal launch of Kanvas by year-end.
Key facts
- Q3 operating profit 240.3 billion won, up 15.5%
- Sales flat at 2.08 trillion won
- Platform sales up 17% to 1.24 trillion won
- 150 billion won share buyback
- Kanana Space pilot in December