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Kakao Plans New AI Chat App in Challenge to Korea’s Messaging Market

The company's first consumer AI service aims to deliver personalized conversations through digital agents
South Korea
k 035720.KO OM 60 Mid and Small Cap 2000 K-Pop Tech 350
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Kakao Corp. plans to launch a new AI-powered messaging app next year, marking its latest attempt to compete in Korea’s artificial intelligence market where it has struggled to gain traction against local rival Naver Corp.

The new app, called Kanana, will operate separately from KakaoTalk, the company’s dominant messaging platform used by 95% of South Koreans. The service will feature AI agents that can maintain conversation context and provide personalized responses, according to CEO Chung Shina at the company’s annual AI conference.

The move comes after several setbacks in Kakao’s AI initiatives. Its previous language model KoGPT failed to gain market acceptance, and the planned 2.0 version was indefinitely postponed last year.

Market observers have raised concerns about potential cannibalization of KakaoTalk’s user base. The company has been reorganizing its AI capabilities, including absorbing its R&D unit Kakao Brain in May and establishing a dedicated AI division.

Kakao plans to introduce various language models under the Kanana brand, including specialized versions like Flag, Essence, and Nano. The beta version will begin internal testing this year before public release in 2025.

The company’s shares have fallen 15% this year as investors remain skeptical about its AI strategy against competitors.

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