Korean Competition Set for Mixed Fortunes

Naver on the rise, as kakao is expected to suffer

 Naver and Kakao are expected to see their fortunes move in opposite directions, according to Samsung Securities. A study that looked at the company's market valuations judged that Naver is on the rise due to the focus it is putting on “mobile-only”, and is expected to lead to a 20% growth annually. Naver is currently seeing its mobile strategy lead to higher sales, which added to the introduction of Naver Pay and its popular video-based app, Snow, is putting the company in a strong position. Meanwhile, Kakao is looking to lose out due to its offline-to-online strategy. Whilst it is the operator of the largest messenger app in Korea, its share price has fallen 30% since the start of the year. Analyst, Oh Dong-hwan, said that “it seems inevitable for Kakao to see falls in profitability in the near [future]”.

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