Kakao, the South Korean tech company best known for running the nation’s dominant messaging app, posted record earnings in the third quarter as it expanded its push into artificial intelligence and financial technology.
The company, often described as Korea’s equivalent of WhatsApp mixed with PayPal, reported revenue of $1.4 billion for the quarter ended September, up 9% from a year earlier. Operating profit surged 59% to $143 million—its highest level ever.
Kakao’s ecosystem touches nearly every part of daily life in South Korea, from messaging and shopping to ride-hailing and payments. The platform business, which includes KakaoTalk and its advertising unit, generated $730 million in revenue, up 12% year-on-year. Business messaging and ad sales both hit record highs as companies increasingly used KakaoTalk for marketing.
Revenue from its fintech arm, Kakao Pay, and mobility unit climbed 24% to $312 million, while its content division—which includes webtoons, music, and entertainment—grew 5% to $708 million.
Kakao’s profit margin rose to 10%, the highest in four years, as cost growth slowed.
The company has faced public criticism after redesigning the KakaoTalk interface, but it plans another update later this year and is investing heavily in integrating AI into its services. Recent launches include “Kanana in KakaoTalk” and “ChatGPT for Kakao.”
“This year we focused on strengthening governance and our business portfolio,” CEO Shin Ji-sun said. “Next year, AI will become the key driver of sustainable growth.”
