The internet company laid out its future global strategy at Connect 2015 in Seoul last Tuesday — its second annual conference organised to discuss its vision and strategy for the mobile industry.
In tech savvy South Korea, YouTube currently reigns supreme, but Naver Corporation, the sprawling conglomerate behind the country’s largest search portal and chat app Line in Japan, vowed to challenge YouTube’s video streaming dominance in 2016.
Naver executives took the stage at the Naver Connect 2015 conference last Tuesday to deliver a message best summed up by two keywords: “live” and “mobile”. They said their strategy will make it possible to challenge video content giants Netflix, Facebook and YouTube owner Google — at least in South Korea.
“The keywords ‘live’ and ‘mobile’ encapsulate our corporate strategy for next year,” said Naver CEO Kim Sang-hun in a keynote speech. “We will focus our attention on providing for our partners mobile-based, live-streaming content, which we believe will be the key to survival in the fast-changing global IT environment against competitors such as Google, Facebook, and even Twitter.”
Kim emphasised keeping an “organic connection” between services and content consumers in order to detect what they want and give them it when they want it.
“In order to protect the domestic movie market, we must shake things up, and provide differentiated technology and content,” said Jang Joon-ki, director of video strategy, adding that Naver will have a two pronged video strategy — one in differentiated services, and another in content.
“Since YouTube entered the domestic market, it started a ‘warring states period’ in the domestic South Korean market. Naver TV Cast can compete fiercely with Facebook and YouTube in video content and in services,” Jang said.
Naver TV produced 290,000 video clips of content a month in the first 10 months of this year — more than double the 140,000 video clips a month the company created during the 12 months of 2014.
This was the result of Naver TV Cast having inked a deal with Smart Media Rep (SMR) for a revenue share of 90 percent for the broadcasters and 10 percent for Naver TV Cast. SMR originally looked for a similar deal with YouTube, but Google insisted on a 45 percent slice of advertising revenue.
SMR consists of seven big media outlets in South Korea — MBC, SBS, CJ E&M, JTBC, TV Chosun, Channel A, and MBN — and launched in the second half of 2014.
SMR, an ad agency for streaming services, provides smart Over-the-Top (OTT) service providers with video advertising proceeds generated from mobile, PC, and smart TV viewership. The seven TV companies of Smart Media Reps make up more than half of all terrestrial and cable TV viewership in South Korea. OTT refers to a telecommunications operator delivering services across IP networks, usually the internet.
In addition to video streaming content, Naver has Line Corp, founded in Tokyo in 2000. Over the past 15 years, it has amassed over 200 million monthly active users in Asia, including Japan, Taiwan, Thailand, Indonesia and, recently, Pakistan.
Naver said it will also gear up other mobile-based services, such as Naver Webtoon, group chat app Naver Band, and V app, a social video streaming service initially focused on marketing Korean pop music in East Asia to ratchet up market share, which has proved a late-blooming success. Naver reported that more than 50 percent of V app viewers come from outside South Korea.
Warming diplomatic ties between Thailand and North Korea could mean a lot more investment into the country by one of Southeast Asia’s wealthiest nations.
North Korea is always looking for ways to break out from international sanctions and US-led diplomatic isolation.
But now a Thai military leader, a man who also leads the country’s foreign ministry, is encouraging his country to invest in North Korea.
Thai Foreign Minister Tanasak Patimapragorn in August 2015 (about two weeks ago) said he wants Thai businesses and individuals to invest in North Korea, and suggested Thailand could be a bridge between the hermit country and the international community.
(FYI, Thailand military overthrew the democratically elected government of Yingluck Shinawatra, sister of Thaksin Shinawatra. She was elected in August 2011 and was overthrown by a military junta in May 2014.)
Thailand is working to upgrade diplomatic relations with North Korea, and has already said it will soon open an embassy in Pyongyang “soon.”
“To open an embassy in any country is a good sign, but all related processes must be carefully considered, including staff and budgets,” General Tanasak said.
Gen. Tanasak discussed a number of bilateral issues with his North Korean counterpart, Ri Su-yong, including a “trade cooperation deal.”
If a deal does get worked out, it would facilitate Thai investment in North Korea’s special economic zone, among other things. But actually, Thailand has a history of investing in North Korea.
Thai-based corporation Loxley Pacific invested massively in North Korea’s IT infrastructure and, in particular, the country’s internet, namely in the Star Joint Venture Company.
The Star JV is a joint venture between Loxley, which is one of the country’s most powerful family-owned conglomerates, which is one of the country’s most powerful family-owned conglomerates, and North Korea’s Post and Telecommunications Corporation, and Star JV took control of North Korea’s Internet address allocation system on Dec. 21, 2009, the country’s single Internet Service Provider.
Gen. Tanasak said the two ministers talk a lot about IT, as well as other issues like health, education and regional issues.
The general also said that Thailand “offered to facilitate talks between North Korea and any country it had conflict with,” according to reports coming from Thai media outlets.
Thai kidnap victim
Mr Ri reportedly told General Tanasak that authorities would follow up the case of Anocha Panjoy, a Thai national who was abducted from Macau by North Korean agents back in 1978.
Former US serviceman Charles Jenkins and his wife told the media they said they saw Ms Anocha alive and well in North Korea.
Before the meeting of the foreign ministers, Phil Robertson, Human Right Watch’s deputy director for the Asia division, pressured Gen. Tanasak to press North Korea for the return of Anocha. There are other human rights issues stunting diplomatic ties from warming up.
Thailand is one of the countries used by North Korean defectors as a transit point to resettle in South Korea. The number of North Koreans who traveling into Thailand has decreased from around 2,000 in 2011 to under 500 in 2015, according to a Thai media report.
The powwow between the two foreign ministers was filled with many niceties, however. North Korea’s Ri Su-yong passed on good wishes from North Korean leader Kim Jong-un to Her Majesty Queen Sirikit on her 83rd birthday.
He invited Gen Tanasak to visit North Korea as part of the 40th anniversary of diplomatic relations between the two East Asian countries.
An exchange of diplomatic visits began in May 2015 when deputy foreign minister Don Pramudwinai visited Pyongyang. Ri Su-yong is the first high-level North Korean diplomat to visit Thailand in a decade, when its then foreign minister Paek Nam-sun visited in 2005.
During his trip in Thailand, Ri Su-yong visited Thai royal family’s pet projects and agricultural pilot programs. Two weeks ago, the North Korean official was on an Southeast Asian diplomatic mission that included trips to Brunei and meetings with ASEAN officials.
The Basmati Rice Issue
Earlier this year, the North Korean ambassador to Thailand, Mun Song-mo, asked the government to set up a diplomatic compound in Pyongyang. However, a government source said this would not happen in the near future.
Five of 10 ASEAN countries — Cambodia, Indonesia, Laos, Malaysia and Vietnam — have diplomatic missions in the North Korean capital.
Diplomatic ties between Thailand and North Korea were quite smooth, especially as Thailand had played a key role in bringing North Korea to the ASEAN Regional Forum back in 2000, when Thailand held the ASEAN chairmanship.
Two sticky Thai-North Korea issues include not only the kidnapping of Thai national Anocha back in the 1970s, but also North Korea’s outstanding rice debt payment. The Thai foreign minister said the issue of rice debt payment was not touched upon but would be discussed in later talks.
North Korea owes Thailand about $300 million after Thailand exported 750,000 tons of rice to North Korea from 1993 to 2002 when the country suffered devastating famine and floods.
Bilateral trade between North Korea and Thailand $42 million in the first half of this year, nearly of that in the form of exports from Thailand ($39 million). Two-way trade was $126 million in 2014 and in 2013 it was $114 million. Thai exports to North Korea including rubber, chemicals and plastics, and Thai imports comprising mainly chemicals, iron and steel, and electrical machinery.
[This article was written originally for The Korea Herald in September 2013.]
Ever eat out at an authentic Thai restaurant here in Seoul, South Korea? It is doubtful that you have, according to the Thai Embassy in South Korea.
There is a dearth of restaurants in South Korea serving real Thai cuisine made from real Thai ingredients at the moment, according to the Thai Ambassador to South Korea. But he is keen to change that.
Kittiphong na Ranong sees improving Thai food restaurants as a way of prying open markets here, which he sees as too closed to agricultural products from his country.
The embassy is determined to upgrade Thai restaurants and the popularity of Thai cuisine here with a number of promotional campaigns, such as one this week: “Thai Restaurant Week” from Sept. 23-29.
“When we launched a promotional campaign earlier this year at a restaurant at Lotte Hotel, we found it extremely difficult to even buy domestically-sold Thai rice,” he said in an interview with The Korea Herald on Sept. 16.
Thailand exported 90 tons of kitchen table rice to South Korea in 2012, a fraction of a percentage point of the 30,000 tons of rice exported from here to Thailand. The vast majority of Thai rice exported to South Korea is low-grade brown rice destined for industrial uses, such as in the manufacture of store-bought makgeolli, Korean fermented rice wine.
Put simply, Thai restaurants cannot make the grade if chefs cannot get their hands on quality agricultural products from Thailand, according to Kittiphong.
Of the 172 restaurants that the embassy determined serve Thai cuisine, 71 were selected to participate in this week’s promotional campaign.
The problem, according to Kittiphong, rests with South Korean import quotas. The permitted amount of Thai rice, poultry, fruit and other agricultural shipments ― which made up about 20 percent of its total exports of 13.6 billion won ($12.5 million) in 2012 ― is limited. Kittiphong wants the quota lifted.
South Korea and Thailand agreed to seek preliminary discussions and a joint study on forging a comprehensive economic partnership agreement when former President Lee Myung-bak met with Thai Prime Minister Yingluck Shinawatra in Bangkok in November 2012.
The two nations also agreed to seek to increase bilateral trade to $30 billion by 2016. Such an enormous increase in trade ― a doubling over the next three years ― could only be met by lifting South Korea’s import quotas on Thai rice, poultry and such Thai fruits as longan and pomelo, the ambassador said.
Thailand currently has a huge rice surplus stockpiled by the government as a result of a recent price support scheme, meant to help out small farmers.
If sold at current market prices, however, the stored rice would result in profit losses and government deficits. Thailand is aggressively searching for untapped markets.
The Thai government’s new intervention began with the landslide electoral victory of Yingluck’s Pheu Thai Party in 2011. In the subsequent two years, it has allocated $18.7 billion to buy rice and shore up support for farmers. The government currently has 10 million tons of rice in storage. This month, the government extended the policy, which could lead to an additional 10 million tons after the 2013-14 harvest due to start in October.
A career diplomat, the mild-mannered Kittiphong expressed frustration at the pace of Thailand-South Korea talks on lifting restrictions on imports, saying that the preliminary FTA talks and a joint feasibility study should take place in tandem with lifting the Thai rice quota.
“When we raised the issue last year, they said that it was a bad time because it was the end of the previous government, that we had to wait for the new government to settle into place,” he said. “But when the new government came in, they said it is the restructuring the ministry, that trade is being separated from the Ministry of Foreign Affairs.
“The issue of rice, chicken and fruits has been on the table for years, so we should be able to resolve that issue separately,” he said.
Why certain imported food items are not available on grocery store shelves in South Korea is debatable. According to proponents of the current restrictions, it is a matter of weak demand for Thai agricultural products.
Critics of the restrictions point to stiff non-tariff barriers here, such as sanitary and phyto-sanitary measures that they say are unfairly leveraged by the government to limit imports.
Discussions on lifting the quota on Thai rice appear slow. So, the embassy is focused on stimulating demand for Thai kitchen table food items through promotion drives such as its current effort.
In “Thai Restaurant Week,” diners are entered into a lucky draw with every minimum purchase of 50,000 won or more on a single receipt. The embassy will announce the winners in mid-October. Four grand-prize winners will receive round-trip flight tickets to Thailand.
Six restaurants are participating in the Thai Select program: Golden Thai in Songpa, Sala Thai’s Jamsil branch, Sala Thai’s Bundang branch, Siam at Seoul Station, Thai Orchid in Itaewon, and Wang Thai, also in Itaewon.
Former envoy to Russia describes how she became the nation’s first female ambassador
[This story was written originally for The Korea Times in February 2012, after Park Geun-hye took the helm of the conservative Saenuri Party and Han Myeong-sook was leader of the more progressive Democratic United Party.]
This could very well be a year of firsts for women in South Korea, as the East Asian nation has seen women take the helm of its two major political parties for the first time in its history.
It was not since 1996 — some 16 years ago — that South Korea saw a similar first for women, when a woman for the first time was appointed as ambassador to a foreign posting.
It was then that Lee In-ho, a Russian expert with a long professional and academic pedigree, was tapped by former President Kim Young-sam as part of an election pledge running on the now-defunct conservative Democratic Liberal Party ticket to include more women at the highest levels of government.
Now women have taken charge of both major political parties. The Saenuri Party is led by Park Geun-hye and the Democratic United Party (DUP) by Han Myeong-sook.
Lee credits her appointment to “a triumph” of what she loosely described as a “women’s lobby” in the late 1990s, a zeitgeist or general buzz in the air that Korean society “in spite of its vaulted achievements in economic development had been neglecting women’s capabilities.”
That public opinion swept South Korea in the wake of the 4th World Conference on Women in Beijing in 1995. The world conference on women was a catalyst in building pressure on the South Korean government to include women, and utilize the talent of women, Lee said.
“There was a pressure in the air that women were underutilized, and a growing women’s movement took hold of that feeling of the time to call for more women to be represented in government at the highest levels,” said Lee who now chairs the Asan Institute for Policy Studies, a think-tank on foreign affairs and economy.
She also actively serves on a slew of university boards and public commissions.
The DUP’s Han in a high profile meeting with the GNP’s Park declared this year “the year of women,” but whether this year can generate the general sentiment for women that the 1995 Beijing conference did remains anyone’s guess.
Lee was first sent abroad as Korea’s ambassador to Finland from 1996 to 1998, and then to Russia from 1998 to 2000 during the presidential administration of Kim Young-sam’s political rival, the late former President Kim Dae-jung.
How Lee ascended to the highest levels of South Korean diplomacy 16 years ago could be instructive in assessing the role of women on the national political stage today.
“It was a moment in our history when the society realized it had been neglecting women as human resources,” Lee said in an interview with The Korea Times on Feb.1. “There was still a lot of prejudice in the Korean diplomatic community.”
She said that her ambassadorial appointment to Russia resulted from the fortunate combination of two men who were free of prejudice against women because of their extraordinary wives: Lee Hee-ho, the wife of Kim Dae-jung, and Lee Beom-joon, the wife of the late former Foreign Minister Park Jeong-soo.
“There was unseen resistance at first to appointing a woman as a top diplomat,” Lee said. “The presence of these wives, the influence they had on their husbands, was exceptional. They had influence on their husbands.”
But since the country’s Ministry of Foreign Affairs and Trade (MOFAT) sent its first woman ambassador abroad in 1996, only one other person has had an opportunity to serve a foreign posting. South Korean Ambassador to Paraguay Park Dong-won is the only female ambassador serving abroad among MOFAT’s more than 120 foreign diplomatic missions.
[I added this youtube vid clip from a 2006 lecture organized by the Royal Asiatic Society. In it, Lee In-ho discusses Korean history from the late nineteenth century to the present. She claims “leftist historians” (her words) are trying to re-write Korean history from their point of view, one in which the U.S. is to blame for Korea’s post-liberation trials.]
There was real resistance from the “old boy’s network” at MOFAT to appointing a woman as ambassador in the late 1990s, Lee said.
Overtures were made to many high-profile women, after Kim Young-sam’s election, including to Lee who was offered various government positions.
“Lee Hee-ho was one of the people who persuaded me to accept a post as ambassador to Finland,” she said.
Lee said Finland’s extensive Russian archive appealed to her academic interests. She received her Ph.D. in Russian history from Harvard University, and is fluent in Russian and English.
Actually Finland shares many similarities with Korea, she said. Now Finland is a model social democracy, but it also had a difficult history, sandwiched between two large nations, Russia and Sweden, which influenced Finland throughout its history. Finland suffered from a grinding poverty that is little appreciated now, but the country managed in pulling itself into affluence.
Lee said her experience as ambassador to Finland was good “because it afforded me an insight one gets only from experience and is impossible to get from books.”
When her posting came to an end in 1998, when Kim Young-sam’s political rival took office, she finessed a new appointment as ambassador to Russia.
Again she faced stubborn opposition from career male diplomats jealous of a woman envoy. Rumors were constantly circulating against her, she said. “Women are outsiders” to what she described as the “all boys club of Korean career diplomats.”
But her impressive resume and expertise in Russian history and culture defied all the criticisms the MOFAT men could muster.
Korea and Russia established diplomatic relations in 1990. Lee became Korea’s fifth envoy from 1998-2000. In addition to being Korea’s first female ambassador to Russia she was also the first Korean envoy fluent in Russian.
Her fluency made her popular among Russian officials and Russian fluent European diplomats. “I understood and enjoyed the Russian language and culture, and that allowed me to be admitted into certain circles that a Korean envoy had never been admitted into before,” Lee said.
It made her an effective diplomat for Korea, too. She secured a presidential summit for Kim Dae-jung in spite of the tumult that characterized the Russia of Boris Yeltsen, especially in the late 1990s.
“I brought with me to the post a Korean understanding, as well as an American one, by virtue of my many years of studying and living in the United States,” she said.
The highlight of her posting was the presidential summit between Kim Dae-jung and Boris Yeltsen.
Yeltsen was sick from ill health and alcoholism and was constantly hospitalized at the time. “It was not at all certain the summit would happen,” Lee recalled about the Korea-Russia summit.
“Chinese President Jiang Zemin had only 10 minutes with Yeltsen in a meeting in his hospital room,” she said, and with less than a week before the Kim’s presidential visit, “the Dumas tried to impeach him.”
All the while, rumors and machinations against her persisted. Near the end of her term, she said rumors circulated that she “would either be kicked upstairs” this time, instead of being kicked out, or be put up as a National Assembly candidate.
After her four-year diplomatic service in Finland and Russia, she led the Asia Foundation for three years.
Early life, end note
Lee said that equality in the family and in the work place was the focus for women’s rights activists in the male-centered Korean society that Lee grew up in, one that simply preferred boys over girls.
Lee said she sees a lot of achievements for women, but also an unfinished project.
Lee grew up in a distinguished yet conventional 4-generation Confucian family in Myeongryoon-dong in Seoul.
Her father worked at a reputable bank (later it became Shinhan Bank), and she attended an experimental co-educational high school that was a part of Seoul National University (SNU) called, College of Education.
Lee was a junior high school student when she briefly experienced living under communist rule. That’s when in the summer of 1950 Korea North crossed the DMZ and seized control of Seoul. Seoul changed hands that autumn, and then in the winter of 1950, Lee and her family fled to Busan when control over Korea’s capital city was again seized by the communist North.
She was admitted into SNU’s history department in 1955, but then was afforded the opportunity to finish the remainder of undergraduate work at Wellesley College in the U.S. She went on to obtain a Ph.D. in Russian history at Harvard. She would not return to Korea until 1972.
“Because my name sounded like a man’s, however, people often read my articles thinking I was one,” she said. In addition to her male-sounding name of In-ho, her pedigree and American education gave her breathing room to pursue a career in academia without the moniker: “Her writing is good for a lady.”
From 1972-1979 she taught at Korea University, and from 1979-1996 at SNU.
Lee said more needs to be done to level the playing field for women in Korean society, but also insisted progress has been achieved, from obtaining the franchise with the founding of the republic to, in recent years, reforming family law.
However, the prospect of South Korea electing its first female president is mixed. Reforms could open doors for political office beyond the presidency.
The country’s two major political parties are led by women. Han of the DUP has called for 15 percent of the candidates that her party fields in the coming April general elections to be women, and the ruling Saenuri Party under Park’s leadership is mulling over a proposal of an even more robust 25-percent female candidate quota.
For now, women’s representation remains sparse. The number of women cabinet ministers can be counted on one hand. 2008’s National Assembly elections saw 41 of 299 seats, about 13 percent, go to women, some allotted by their party’s proportional representation system, others in direct elections.
“When I returned from my diplomatic service, the floodgate was opened at the Ministry of Foreign Affairs for young women diplomats,” Lee said. “Now what is important is to fill that upper-middle section at the ministry.”
[This story was written originally in March 2013 reporting from the South Korean side of the Demilitarized Zone (DMZ) for The Korea Herald and later re-published by The Nation in Thailand.]
A handful of tour buses carrying foreign diplomats, Korean reporters and children slowly lumbered across Unification Bridge into the demilitarised zone, carefully negotiating barricades assembled halfway along the bridge’s length.
The schoolchildren were fidgety and chattering excitedly, jumping out of their seats to peer out of the bus windows at sights they scarcely could have seen before – armoured vehicles, heavily armed checkpoints and nests of razor-wire, the legacy of a three-year civil war and 60 years of national division.
The schoolchildren, a dozen foreign envoys, and their entourage were part of March 21’s “International Children’s Peace Day”, a day-long tour of various tourist sites in and around Paju, a sleepy rural town north of Seoul. It was organised by International Cooperation of Environmental Youth, a US-based group led by organiser Lee Kyoung-tae and wife Melissa Lee.
The couple has made headlines over the years on peace and environmental issues, including a movement to build what the couple described as a “children’s peace forest” inside the DMZ.
“It is a great idea because peace is one of the most expensive ideas there is, and children can market the idea better than anyone else,” said Charitha Yattogoda, a diplomat from the Sri Lankan Embassy in Seoul.
“We also know how expensive peace can be in Sri Lanka. We had a civil conflict for 30 years and only recently achieved peace,” he said during the day-long event.
“We know how important it is, and we at the embassy immediately thought of joining this event to lend our support as best as we can.”
The DMZ can be a culture shock for any visitor. Barbed wire fences and security checkpoints abound, guarded by soldiers lugging machine guns.
The soldiers are not lonely, however, as busloads of tourists show up daily to gawk at the world’s most heavily fortified border, even as North Korea threatens to drown Seoul in a “sea of fire”.
“It’s a good experience for the children. This is not an easy place to organize a visit, so we appreciate the effort the organisers made for the children. Normally kids under 12 years of age are not allowed inside the DMZ,” said Wang Kai, wife of Austrian Ambassador Josef Muellner. Wang delivered welcome remarks at Imjinggak Pavilion at the start of the tour.
Imjinggak Pavilion was built “to remind Koreans of their painful past and their commitment to unification”, says the Gyeonggi provincial government.
The pavilion’s amusement park, fast-food joints and kitschy souvenir shops mix with an ever-present Cold War tension that is higher now than it has been in years, following North Korean outrage over UN sanctions and joint US-South Korean military drills that have included Cold War-style B-52 flyovers.
Sensing potential controversy, some foreign diplomats shied away from lending any insights about the divided Korea, the demilitarised zone or the North.
Most of them, however, realized the crucial role that today’s children must eventually take if peace and unification is to return to their country.
“War and peace is a game for politicians to play, but I think these young people will grow up to change the way the game is played,” said Sameer Alwahedy, an attache at the Jordanian Embassy in Seoul. “In Jordan, we believe in peace, everyone in the world has the right to live in peace. A children’s event like this could be a great help in the Israeli-Palestinian issue as well.”
It is easy to cynically dismiss the conflict-zone tourist industry that has slowly grown in the area, including the Dora Observatory, where one wave to soldiers and look at North Korea through binoculars for 500 won (Bt13), and the amusement park at the Imjinggak Pavilion, the start and end point for the day-long tour.
But the mix of tourist kitsch Cold War humor shows Paju’s residents are making the best of a bad situation, and it could offer hope.
“This event symbolizes to me the promotion of peace because, obviously, youth are the future. We have to make a commitment to conflict resolution and this is a conscious effort to promote peace,” said SU Ahmed, deputy head of mission at the Nigerian Embassy.
“Children are the ones who suffer the most in a conflict situation. That is why it is important to let them participate in being part of the solution in events like this one,” said Adamu A Musa, minister at the Nigerian Embassy in Seoul.
In addition to the amusement park, which is complete with rides and carnival booths, there are a number of other touristy things to do and see: take the bicycle tour; bang the Bell of Peace for 10,000 won; stroll on the Bridge of Freedom, which comes to an abrupt and symbolic dead end; and peer at the rusting steam engine stuck in situ since the end of the Korean War, riddled with bullet holes.
Musa, Ahmed and their wives returned to Seoul with souvenir DMZ baseball caps.
[This story was written originally on October 21, 2015 reporting from Seoul, South Korea.]
The main features of the planned service include Mercedes and Lexus taxi models, a suit-wearing driver, and a complimentary drink, at around three times the price of a regular cab.
Kakao, the $7 billion parent company of messaging app KakaoTalk, released more details on Tuesday about the planned launch of a premium taxi app, as it tries to monetise lifestyle platform businesses.
KakaoTaxi Black will start off with a test run connecting users to a fleet of 100 cars through the end of this year while the company awaits final approval from the Seoul City government, when the service will then be expanded.
KakaoTaxi Black appears to be a souped-up version of Kakao’s existing ride-hailing app. So far the “taxis” include Mercedes E-Class Sedans and Lexus models, in contrast to the natural gas-powered Hyundai Sonata and Kia Lotze models that the vast majority of Seoul cabbies drive
KakaoTaxi Black users will send a request for a ride to a specific destination from their smartphone using the app.
The drivers will be professionally licensed and wearing a suit, much like a limousine service driver. The ride will even come with a complimentary beverage.
The catch is the high-end cab will cost about three times the price of regular cab, the company said. So, a ballpark figure could be about 45,000 won ($37.50) for a crosstown trip in Seoul that would normally be priced at around 15,000 won ($12.50). The base fee is 8,000 won ($6.60).
KakaoTaxi Black could presage future efforts to strengthen the company’s profit sources, since it has posted rather weak financial results for the past two quarters. That said, Kakao is a local success story, growing from a fledgling startup to South Korea’s second-largest IT venture after Naver Corp.
It merged with search portal Daum last year and spun off games and innovative businesses from its mobile-based platform. Intensifying competition in the industry has since burdened the firm with heavy marketing costs and anemic profits.
John Jung, Kakao’s chief business officer and the executive in charge of KakaoTaxi, said during a media briefing on Tuesday that while the concept is quite new to South Korea, premium taxis already take up 27 to 30 percent of the worldwide taxi market.
Kakao launched its existing ride-hailing app after it inked a three-party MOU with the Seoul Taxi Association and a major taxi company. The premium taxi drivers will be regular employees of the taxi company, Kakao said.
As of this month, Kakao said it has about 160,000 drivers registered with KakaoTaxi, which has accumulated 30 million calls since it launched in March, and receives 300,000 requests on a daily basis.