[Alpha Biz= Kim Jisun] Kakao has completed the liquidation of its Chinese subsidiary, Daum Kakao China (DK China), which operated the portal service Daum in China, effectively ending all its business operations in the country.
According to filings submitted on May 15, the company finalized the liquidation process on April 2, marking the end of DK China’s 10-year operation since its establishment in 2015.
DK China was responsible for managing various internet services provided by Daum Web and Kakao in China. However, due to ongoing uncertainties in the Chinese market and challenges in administrative procedures and corporate management, Kakao decided to discontinue its business there.
A Kakao spokesperson stated, “There were difficulties with administrative processes, corporate governance, and business expansion in China that made continuing operations untenable.”
With this liquidation, Kakao no longer operates any subsidiaries conducting business in China. Last year, in Q1 2024, Kakao also liquidated Kakao IX China, which handled Kakao Friends character merchandise distribution and intellectual property licensing in China. Only certain subsidiaries under SM Entertainment continue operations in China.
In addition, Kakao finalized the liquidation of its Indian subsidiary, KROSS Komics India, last month. Kakao Entertainment ended the Cross Comics webtoon service in India in 2023, transitioning its Indian webtoon business to its global English platform, Tapas.
This move reflects Kakao’s strategic focus on core businesses such as artificial intelligence (AI) and KakaoTalk, while reducing exposure to uncertain overseas markets.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
